UK operator Centrica said today it had bought stakes in seven North Sea fields from French rival Total for £246million.
Centrica said it had acquired all of Total’s non-operated interests in the UK central North Sea, taking its annual production to 70million barrels of oil.
The deal involving assets in the Greater Armada, Alba and Mungo and Monan areas comes after a period of acquisitions for Centrica, and the company said it planned to make further investments in an effort to increase upstream production by 50%.
Last month the firm paid £142million for ConocoPhillips’s interest in the Statfjord fields, which are spread across the UK and Norwegian sectors of the northern North Sea, giving it additional reserves of 36million barrels of oil equivalent.
In November it agreed a £13billion gas deal with Norway to meet about 5% of the UK’s annual demand for the next 10 years. At the same time, it bought £1billion of Statoil assets in Norwegian waters.
Centrica said today its non-operated stakes in Greater Armada’s Maria, Seymour, Armada and Everest fields, as well Alba and the Mungo and Monan cluster, would be managed from its Aberdeen office.
The operator said it had added to its existing stake at Maria, Seymour and Armada, but now had an interest in Everest, Alba, Mungo and Monan for the first time.
As part of the deal, Centrica has also added stakes in BP’s Etap facility and central area transmission system infrastructure to its portfolio.
Mark Hanafin, managing director of Centrica Energy, said: “Today’s announcement marks another step in the growth of our upstream oil and gas business.
“This acquisition in the North Sea provides a good fit with our existing portfolio and strategy, bringing strong cash flow and adding value for Centrica.
“It underlines our commitment to invest where we see attractive opportunities, securing future energy supplies for the UK.”
Centrica’s upstream oil and gas operations have grown since the group bought Venture Production in 2009.
Staffing levels in Aberdeen have since mushroomed from about 140 to about 350, including some 60 taken on last year, making it the Windsor-based firm’s largest office.