Centrica subsidiary Spirit Energy has signed agreements to sell a 46.25% interest in the Cygnus gas field to Ithaca Energy in a deal valued at approximately £215m ($287.4m).
The agreement includes a headline consideration of £116m and the transfer of £99m in decommissioning liabilities.
Cygnus, situated 150km east of the Lincolnshire coast in the southern North Sea, is currently co-owned by Spirit Energy (61.25%) and Ithaca Energy’s subsidiary Eni UK (38.75%), with Ithaca Energy as the operator.
Upon completion, Spirit Energy will retain a 15% interest in Cygnus, aligning with Centrica and Spirit Energy’s strategy to maximise value from remaining reserves.
The sale delivers immediate cash consideration and transfers long-term decommissioning responsibilities.
The transaction, with an effective date of 1 January 2025, is set to be finalised in the second half of 2025.
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By GlobalDataCentrica group chief executive and chairman of Spirit Energy Chris O’Shea 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.”
Ithaca Energy, already a stakeholder and the operator of Cygnus, is deemed well-suited to assume majority ownership, according to Centrica.
Post-transaction, Spirit Energy will concentrate on the Morecambe Net Zero carbon storage project, other producing assets, and the environmentally responsible decommissioning of its facilities and wells.
The sale will result in a reduction of Spirit Energy’s 2P (proved plus probable) reserves by 19.4 million barrels of oil equivalent, accounting for the disposed interest.
In a related development, Centrica signed a 15-year sale and purchase agreement with Petrobras in February, agreeing to supply 800,000 tonnes per annum of liquefied natural gas (LNG) from 2027, sourced from its US LNG portfolio.
