UK's Centrica and Bayerngas Norge are to form a newly joint venture that will create an independent European E&P company that will have a focus on gas.
The new company will be split between Centrica who will own 69 per cent and Baynergas and its affiliate Stadtwerke Munchen (SWM) who will hold the remaining 31 per cent. The deal is expected to close in the fourth quarter of 2017, subject to competition and regulatory approvals.
The Joint Venture will comprise Centrica’s assets in the UK, Netherlands and Norway and Bayerngas Norge’s assets in the UK, Norway and Denmark. The JV will also contain a mix of producing assets, development options and exploration licences, as well as one operated UK onshore terminal at Barrow-in-Furness.
The portfolio of the JV will be gas weighted, with approximately 66 per cent of total reserves and resources comprising natural gas.
Iain Conn, group chief executive of Centrica plc, said: “Alongside the recently-announced disposals of our Canada and Trinidad & Tobago assets, this joint venture creates a larger, more sustainable and more capable European E&P business and brings together like-minded shareholders who have a shared strategic vision on the role of E&P.”
Florian Bieberbach, chief executive of Stadtwerke München, added: “We are convinced that by combining our E&P activities we will create an even stronger and more sustainable business."