Merged North Sea independent starts operations
Spirit Energy has begun trading as an independent North Sea area oil and gas operator.
This is a joint venture which combines Centrica’s E&P business with that of Bayerngas Norge.
Centrica owns 69% of the company, with Bayerngas Norge’s former shareholders, led by Stadtwerke München Group, owning the remaining 31%.
This year, production from the combined portfolios should be around 50 MMboe from 27 producing fields, with total 2016 year-end 2P reserves and 2C resources of 625 MMboe.
The company employs more than 700 people in the UK, Norway, Netherlands, and Denmark.
Spirit, a self-financing entity, plans to invest around £400-£600 million (US$534-$801 million) annually to deliver production of 45-55 MMboe/yr going forward.
Centrica expects the transaction to generate £100-£150 million (US$133-$200 million) net present value of synergies.
For 2018, the company added, Spirit’s focus will be on maximising efficiency from its producing assets; progressing development projects such as Maria and Oda offshore Norway; appraisal drilling at the Fogelberg discovery in the Norwegian Sea; and drilling various other exploration prospects.
Spirit will also partner with Wintershall in submitting a plan for development and operation for the Skarfjell development in the Norwegian North Sea.