By OGJ editors
HOUSTON, July 16 -- Centrica PLC, parent of British Gas, signed a definitive agreement to buy Marathon Oil Corp.'s nonoperated interests in Heimdal field, including related producing fields and associated undeveloped acreage off Norway.
The transaction has a total value of $416 million and an effective date of Jan. 1, 2008. That includes the $375 million purchase price plus $41 million in associated Norwegian asset tax pools, but excludes any price adjustments at closing. Subject to Norwegian regulatory approval, the companies anticipate closing the transaction, during the late third quarter or early fourth quarter.
Under terms of the agreement, Centrica will acquire Marathon's 23.8% interest in Heimdal field, as well as its 46.9% interest in Vale field; a 20% interest in Byggve field; a 20% interest in Skirne field; and 50% and 20% interests in Peik and Heimdal East respectively.
Marathon's net proved reserves associated with these assets at yearend 2007 were 4.8 million bbl of oil equivalent and total net risked resources of 17.5 million boe. Current net production from these operations averages 7,000 boe/d. None of the assets covered by the agreement are associated with Marathon's Alvheim and Vilje development projects or related operations on the Norwegian continental shelf.
