Spirit Energy Completes $1.1 Billion Sale of Norwegian Oil & Gas Assets

Spirit Energy, a subsidiary of Centrica, has firm the sale of its oil and gas exploration and production portfolio, including the Statfjord field in Norway, for $1.1 billion.

The Norwegian assets of Spirit Energy were transferred to Sval Energi while the subsidiaries of Equine acquired Spirit Energy’s interests in the Statfjord field.

As part of the agreement signed in December 2021, Equinor received a payment of $193 million from Spirit Energy.

Centrica said all decommissioning responsibilities related to the assets will also be transferred to buyers as part of the transaction.

The final consideration for the deal could be increased to $1.2 billion, subject to commodity prices.

The sale is part of Spirit Energy’s efforts to focus on increasing gas production in the UK while reallocating assets to energy transition and decommissioning activities.

Centrica holds a 69% stake in Spirit Energy while the remaining 31% stake is held by Stadtwerke München.

Centrica said earlier that the sale of these assets aligns with its strategy to reduce its exposure to carbon-intensive oil and gas exploration and production.

“The sales result in a 92% reduction in Spirit Energy Group’s oil and liquids reserves and a 38% reduction in its gas reserves, and represent an important step towards Centrica’s implementation of its decarbonization strategy. its portfolio and reducing its exposure to oil and gas production,” Centrica said.

Spread over the Norwegian and British continental shelves, the Statfjord area covers the main Statfjord field, Statfjord Øst unit, Sygna unit, Statfjord North (PL 037) and Barnacle.

The Statfjord main field development covers the Statfjord A, B and C platforms.

In the third quarter of 2021, Spirit Energy’s daily production in the Statfjord area was around 21,000 barrels of oil equivalent per day.