Centrica Sells Remaining North Sea Assets to Serica Energy in £98 Million Deal

Centrica plc (LON: CNA) has announced the sale of Spirit Energy Limited's remaining 15% interest in the Cygnus gas field, alongside other producing assets in the Greater Markham Area and Southern North Sea, to Serica Energy plc.

The total transaction value for Spirit Energy is approximately £98 million.

This figure includes a headline consideration of £57 million and the transfer of £41 million in decommissioning liabilities. Centrica's share of the headline consideration is expected to be £39 million, representing its 69% stake.

The disposal is commercially effective from January 1, 2025, and is anticipated to conclude in the second half of 2026, pending regulatory approvals and customary interim adjustments.

This move aligns with Centrica's strategy to optimize its infrastructure portfolio, securing immediate cash and offloading long-term decommissioning responsibilities. The previous sale of 46.25% of Spirit's interest in Cygnus, completed in early October, mirrors this strategic direction.

Following the disposal, the Morecambe Hub will become Spirit's primary producing asset, holding total retained reserves of 9.0 million barrels of oil equivalent (mmboe).

Spirit's focus will shift towards developing the Morecambe Net Zero carbon storage project and safely decommissioning facilities and wells with minimal environmental impact.

The sale allows Centrica to recycle capital into new investment opportunities, particularly within the UK, supporting the energy transition. These investments aim to deliver current energy needs while fostering a greener future.

Chris O'Shea, Group Chief Executive of Centrica and Chairman of Spirit Energy, stated, “Our focus at Centrica is on creating value. By recycling capital we're unlocking new investment opportunities in the UK and elsewhere, and accelerating the energy transition – delivering the energy needed today and powering tomorrow's ambitions by energising a greener, fairer future.”

Driver Breakdown:

• Capital Recycling: Generates funds for reinvestment in strategic growth areas.
• Decommissioning Liability Transfer: Reduces long-term financial obligations and risk.
• Portfolio Streamlining: Focuses Spirit Energy on core assets and future carbon storage projects.

The success of Centrica's future investments, particularly in the Morecambe Net Zero project, hinges on a supportive regulatory framework. The regulatory environment will play a crucial role in determining the viability and attractiveness of these large-scale UK investment opportunities.