Centrica purchases Newfield UK subsidiary

Centrica, the country’s largest energy supplier, has purchased the UK arm of Newfield Exploration Co. for £242 million in cash to enhance its gas reserves. Consequently, Centrica will take an 85% interest in the Grove gas field, which commenced production in summer 2007, an 80% interest in the Seven Seas gas development, the Sloop gas discovery and associated exploration acreage.

British Gas’ owner said the acquisition of Newfield UK was in accordance with its strategy of increasing its level of gas reserves.

The deal is expected to add net gas reserves of up to 300 billion cubic feet of gas over the next few years, equal to more than 20% of Centrica’s current UK gas reserves.

Centrica was formed in 1997 when British Gas plc demerged into Centrica plc and BG plc (later known as BG Group plc). The demerger grouped British Gas’s gas supply, services, retail businesses and gas production business of the Morecambe gas fields under Centrica.

Centrica is the largest supplier of gas to households in the UK and one of the largest suppliers of electricity, operating under the trading names “Scottish Gas” in Scotland and “British Gas” in the remainder of the UK.

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