Centrica to buy Statfjord assets from Shell

Centrica Resources (Norge) AS has agreed to acquire from AS Norske Shell the Royal Dutch Shell PLC unit’s interests in Statfjord field and associated satellite fields in the Norwegian North Sea for $225 million.

Sept. 17, 2010

2 min read

By OGJ editors
HOUSTON, Sept. 17 -- Centrica Resources (Norge) AS has agreed to acquire from AS Norske Shell the Royal Dutch Shell PLC unit’s interests in Statfjord field and associated satellite fields in the Norwegian North Sea for $225 million. Statfjord field produces natural gas as well as some oil and natural gas liquids.

The sale contributes to Shell’s target of selling $7-8 billion worth of assets over 2010-11 as part of its focus on major growth projects.

Shell’s share of production from the mature Statfjord field was 13,300 boe/d in 2009.

“Shell’s growth strategy for Norway is unchanged,” said David Loughman, managing director of AS Norske Shell. The company’s production interests include Draugen and Ormen Lange, where Shell is operator, Loughman said. The company also holds equity in Troll, Kvitebjorn, and Gjoa fields is actively exploring in the Voring basin as well as progressing existing discoveries, he said.

The agreement with Centrica includes Shell’s 11.04% in production licence 037 and corresponding shares in the underlying producing fields, including 9.44% interest in Statfjord field.

The agreement is subject to approval by the Norwegian authorities.

Licence partners in PL037 include operator Statoil, Petoro, ExxonMobil Corp., and ConocoPhillips. Centrica is a partner in the cross-border Statfjord field. Additional partners in the satellite fields include Idemitsu, Total SA, and RWE Dea.

Discovered in 1974, Statfjord has been on production since 1979. It recently has been producing about 27,000 b/d of oil with associated gas and gas liquids. Operator Statoil is drilling 60 wells in a project called Statfjord Late Life to extend production from the mature reservoir.