Energy giant Centrica said today it was on track to reach a production target of 75million barrels of oil equivalent (boe) per day after a string of North Sea acquisitions.
Three acquisitions in the UK and Norway worth £1.2billion will see annual production nearing 70million boe, it said, adding this was close to its 75million target.
Centrica also announced it had struck oil on the Norwegian North Sea Cooper prospect in the Norwegian Sea.
Cooper was described as “encouraging” and will now be subject to further testing to prove its commercial viability.
Announcing first half results, Centrica said sales in its upstream UK business rose to £682million during the first half of 2012. This was compared with £531million in the first half of 2011.
Operating profits in the upstream division were £508million in the latest period, up from £414million in the first half of 2011.
Centrica said the higher profits were driven by increased gas production and prices as well as the sale of an offshore wind project, offsetting lower volumes in its power business due to weaker market conditions due to mild weather.
First half production in the UK totalled 25.7million boe, a slight increase on 25million boe in the first half of 2011.
Centrica had production issues at its biggest asset, the South Morcambe field off England, but it said this and declining production was offset by increased output from its Norwegian assets.
The firm is close to first gas from its Seven Seas subsea tie-back and is drilling a second production well on its Ensign gas development, both in the southern North Sea.
It also expects first gas from the Morecambe Bay Rhyl field and Norwegian North Sea Atla development by the end of the year.
First gas from its southern North Sea York and Kew developments are expected in 2013.
Earlier this week, Centrica welcomed a £500million boost to the £1.4billion southern North Sea Cygnus gas development, in which it holds a 48.75% stake, thanks to a new allowance for shallow water gas fields announced by Chancellor George Osborne. The field is due on stream in 2015.
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