Spirit Energy production ‘slightly below expectations’, Centrica says

Spirit Energy’s production levels have been “slightly below expectations” so far this year, one of its co-owners said.

Utilities giant Centrica said Spirit’s full-year output is now likely to end up “in the lower half of the 2018 targeted range of 50-55million barrels of oil equivalent (mmboe)”.

In a trading update, Centrica, which owns British Gas, said unplanned outages at Morecambe Bay and lower volumes from certain non-operated Norwegian fields had played a part.

But Centrica said an appraisal well on Spirit’s Fogelberg field in Norway revealed the presence of more resources than initially forecast. Flow test results are expected later this month.

Spirit launched in December 2017 on the back of a merger between Centrica’s exploration and production business and Bayerngas Norge.

Centrica has a 69% stake in the venture and Bayerngas Norge’s former shareholders, led by Stadtwerke München Group, hold 31%.

Upon launching, Centrica said Spirit would target medium-term production of 45-55mmboe.

Centrica said Spirit’s total capex was likely to total £500million this year.

Recommended for you

Spirit Energy seeks assessment partners for CCS project