Centrica plc announces that subsidiaries of Spirit Energy Limited have entered into agreements to sell a 46.25% interest in the Cygnus gas field1 to a subsidiary of Ithaca Energy plc.
The total value of the transaction to Spirit Energy is approximately £215 million, including headline consideration of £116 million and the transfer of £99 million of decommissioning liabilities associated with the interest. Centrica’s 69% share of headline consideration is expected to be £80 million.
The disposal has a commercial effective date of 1 January 2025 and is expected to complete during the second half of 2025, with customary interim period adjustments to be applied.
The transaction is strongly aligned with Centrica and Spirit Energy’s strategy to maximise value from Spirit’s remaining reserves, delivering attractive upfront cash consideration, and provides further value by transferring long-term liabilities.
As an existing shareholder and the operator of Cygnus, Ithaca Energy is ideally positioned to take on majority ownership of the asset.
Following completion of the transaction, Spirit Energy will remain focused on the development of the long-term Morecambe Net Zero2 carbon storage project, its remaining producing assets and safely and efficiently decommissioning its facilities and wells with minimum environmental impact.
Spirit Energy’s 2P reserves will be reduced by 19.4mmboe (1,139mmth of gas, 0.4mmboe of Natural Gas Liquids (NGLs)) to reflect the interest disposed.
Chris O’Shea, Group Chief Executive of Centrica and Chairman of Spirit Energy, said: “Our focus is on delivering value for Centrica’s colleagues, customers and shareholders through the energy transition. Through this disposal we are taking another step in reducing our exposure to gas production while accelerating the delivery of enhanced value to shareholders, allowing the Spirit team to further focus on delivering the largest carbon storage project in Europe at Morecambe Net Zero.
“This is only one of many exciting opportunities across Centrica, aligned to the energy transition, as we continue to re-position our infrastructure portfolio, and we remain firmly focused on capturing the immense value on offer.”
