UK’s Centrica wraps up its sale of Spirit Energy Norway

UK-based energy services and solutions provider Centrica has revealed that the sale of its Norwegian business and the Statfjord UK field has been completed for $1.1 billion.

Back in December 2021, Centrica’s subsidiary Spirit Energy disclosed that it had entered into a deal with HitecVision-backed Sval Energi, which would allow Sval to acquire the interests held by Spirit Energy Norway, excluding the Statfjord Norway field.

In addition, Spirit reported that Equinor would acquire the firm’s interest in the Statfjord area, spread across the Norwegian and UK Continental Shelves, and developed by three integrated production platforms: Statfjord A, B, C. 

In an update on Monday, Centrica informed that all conditions for the sale of Spirit Energy’s Norwegian assets to Sval Energi and Spirit Energy’s interests in the Statfjord field to Equinor for an initial headline consideration of $1.1 billion were satisfied. 

The UK player says that all decommissioning liabilities associated with the assets -approximately £800 million (over $1 billion) – will also transfer to the buyers as part of the transaction. The company explains that the final headline consideration may rise to $1.2 billion dependent on commodity prices.

Centrica also elaborates that Spirit Energy will now focus on maximising the delivery of its gas production for the UK, repurposing assets for the energy transition and decommissioning activities.

In a statement on Wednesday, Sval Energi confirmed the completion of the Spirit Energy Norway acquisition. The firm says that this strengthens its position on the Norwegian Continental Shelf.

According to the company, the acquisition, which includes 45 licences (six operated), including seven producing fields (two operated), and several exploration and development opportunities, closed on 31 May 2022 with 1 January 2021 as the commercial effective date. 

Nikolai Lyngø, Sval Energi CEO, remarked: “We are glad to have completed the acquisition of Spirit Energy Norway. Today, we celebrate uniting our two teams and strengthening our capabilities. Thanks to an efficient integration process, we have also finalised the integration of the entire organisation, including a new Sval leadership team. We now look forward to continuing our growth journey and manifesting our position on the Norwegian Continental Shelf.”

Moreover, Sval will now be on course to reach 100,000 barrels of oil equivalent per day in 2023. Recently, the firm disclosed an agreement with Equinor to acquire stakes in Martin Linge and the Greater Ekofisk Area.