Centrica has concluded the sale of the majority of Spirit Energy’s Norwegian assets to Sval Energi, and its interests in the Statfjord field to Equinor, as it focuses on UK gas production and energy transition projects.
Centrica, which holds 69% of Spirit, said this week that all conditions of the roughly $1.1 billion (£880m) deal had been satisfied, enabling the transaction to conclude on 31 May.
The group announced a deal to offload the majority of its Norwegian business to private equity-backed Sval Energi in December, alongside a separate $50m agreement to hand minority sakes in Statfjord to Equinor.
The former portion includes 45 licences – six of which are operated – seven producing fields and several further development and exploration opportunities.
All of the approximately £800m in decommissioning liabilities associated with the assets will also be transferred to the buyers, the UK-listed energy group said.
The deal is effective as of 1 January 2021, and as such the final consideration could rise to $1.2 billion depending on commodity prices.
Equinor also confirmed closure of deal, adding that that as part of the transaction, it had received a payment of $193m from Spirit Energy.
Centrica said last year that the UK business would continue operating in “run-off” mode, reiterating this week that the company’s focus would now be on maximising delivery of gas production in the UK, repurposing assets for the energy transition and decommissioning activities.
The group plans to publish its next interim results on 28 July 2022.
Sval, meanwhile, said this and another agreement with Equinor puts the company on course to reach 100,000 barrels of oil equivalent production per day in 2023.
Chief executive Nikolai Lyngø said: “We are glad to have completed the acquisition of Spirit Energy Norway. Today, we celebrate uniting our two teams and strengthening our capabilities. Thanks to an efficient integration process, we have also finalised the integration of the entire organisation, including a new Sval leadership team.
“We now look forward to continuing our growth journey and manifesting our position on the Norwegian Continental Shelf.”
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