British Gas owner Centrica PLC (LSE:CNA) will get £39 million after its majority-owned Spirit Energy sold its final 15% interest in the Cygnus gas field, along with all other producing assets in the Greater Markham Area and Southern North Sea, to Serica Energy for a total transaction value of approximately £98 million.
The deal includes £57 million in headline consideration and the transfer of £41 million in decommissioning liabilities.
Centrica's portion is based on its 69% stake in Spirit.
The disposal has a commercial effective date of 1 January 2025 and is expected to complete in the second half of 2026, subject to regulatory approvals.
Centrica CEO Chris O'Shea, who is also chairman of Spirit Energy, said: “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.”
“This disposal generates value for our shareholders, is a significant step in streamlining Centrica's portfolio, and will focus Spirit on developing the option to invest in Europe's largest carbon storage project at Morecambe Net Zero.”
Following the transaction, the Morecambe Hub will become Spirit Energy’s principal producing asset, with total retained reserves of 9.0mmboe.
Centrica said Spirit’s future strategy will centre on developing the Morecambe Net Zero carbon storage project and decommissioning its facilities safely and with minimal environmental impact.
In a separate statement, Serica CEO Chris Cox said the deal is "a further step towards delivering on our strategy and diversifying our asset base through the addition of high-quality assets, adding over 15% to our reserves and significantly boosting production."
He said there was potential for further infill drilling opportunities across the portfolio, especially at Cygnus, where drilling is ongoing.
Serica said the addition was immediately cash generative, with circa $100 million of free cash flow to be generated by the acquired assets by the end of 2028.