POWER COMPANY ENTERS UPSTREAM OIL AND GAS SECTOR

Electricity generator Powergen plc, London, has entered the upstream oil and gas sector by buying a stake in four Irish Sea fields under development. A Powergen spokesman said the company will be studying other upstream asset purchases as opportunities arise. Powergen bought a 3.9% interest in U.K. offshore Blocks 110/13 and 110/15 from Monument Oil & Gas plc, also of London. Monument will retain a 20% interest in each block.

Nov. 29, 1993

Electricity generator Powergen plc, London, has entered the upstream oil and gas sector by buying a stake in four Irish Sea fields under development.

A Powergen spokesman said the company will be studying other upstream asset purchases as opportunities arise.

Powergen bought a 3.9% interest in U.K. offshore Blocks 110/13 and 110/15 from Monument Oil & Gas plc, also of London. Monument will retain a 20% interest in each block.

Monument said the deal will raise f:50 million ($75 million) for reinvestment. It also will cut Monument's funding requirement on the project to F?50 million ($375 million) from 300 million ($450 million).

The blocks hold Douglas, Hamilton, North Hamilton, and Lennox fields, three of which recently won development approval (OGJ, Nov. 1, p. 34). Operator Hamilton Oil Co. Ltd., London, is developing the gas reserves to supply a Powergen gas fired power plant to be built at Connah's Quay.

Among other projects, Powergen is a 50-50 partner with Conoco (U.K.) Ltd. in Kinetica, an independent U.K. gas supplier to industrial and commercial markets.