Centrica to Sell Spirit Energy's Oil & Gas Assets in Norway -- Update
December 08 2021 - 3:36AM
Dow Jones News
By Jaime Llinares Taboada
Centrica PLC said Wednesday that it has agreed to the sale of
Spirit Energy's oil-and-gas assets in Norway to Equinor ASA and
Sval Energi AS for $1.08 billion.
Centrica, which owns 69% of Spirit Energy, said that the deal
will also include a deferred commodity price-linked payment, and
that the buyers will be transferred all 830 million pounds ($1.10
million) of decommissioning liabilities. The share of headline
proceeds for Centrica is expected to be around GBP560 million.
The assets sold represent 52% of Spirit Energy's production in
2020 and 63% of total proven and probable reserves. In the first
half of 2021, Spirit Energy contributed GBP104 million to
Centrica's adjusted operating profit of GBP262 million.
Centrica, which also owns British Gas, said that the sale
further simplifies and de-risks its business model while
strengthening the balance sheet and reducing earnings and cashflow
volatility.
"We are pleased to continue to bring focus to Centrica's
portfolio with these transactions, which are aligned with our
strategy to reduce our exposure to carbon-intensive oil-and-gas
exploration and production in a way that maximizes shareholder
value," Centrica's Chief Executive Chris O'Shea said.
The company added that Spirit Energy's future strategy will be
to realize value from its remaining portfolio in the U.K. and the
Netherlands, while minimizing further investment in oil-and-gas
exploration and development.
The deal is expected to be completed in the second quarter of
2022.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
December 08, 2021 03:21 ET (08:21 GMT)
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