Centrica subsidiary Spirit Energy has closed the sale of its oil and gas exploration and production portfolio, including the Statfjord field in Norway, for $1.1bn.

Spirit Energy’s Norwegian assets have been offloaded to Sval Energi while subsidiaries of Equinor acquired Spirit Energy’s interests in the Statfjord field.

As part of the deal signed in December 2021, Equinor has received a payment of $193m from Spirit Energy.

Centrica said that all decommissioning liabilities related to the assets will also transfer to the buyers as part of the transaction.

The final consideration for the deal could be increased to $1.2bn, subject to commodity prices.

The sale forms part of Spirit Energy’s efforts to focus on increasing gas production in the UK while repurposing assets for energy transition and decommissioning activities.

Centrica owns a 69% stake in Spirit Energy while the remaining 31% stake is held by Stadtwerke München.

Centrica said earlier that the sale of these assets aligns with its strategy to reduce its exposure to carbon intensive oil and gas exploration and production. 

“The sales result in a 92% reduction in the Spirit Energy Group’s oil and liquids reserves and a 38% reduction of its gas reserves, and represent a significant step towards Centrica delivering on its strategy to decarbonise its portfolio and reduce its exposure to oil and gas production,” Centrica said.

Spread across the Norwegian and UK Continental Shelves, the Statfjord area covers the Statfjord main field, the Statfjord Øst Unit, Sygna Unit, Statfjord Nord (PL 037), and Barnacle.

The Statfjord main field development covers the Statfjord A, B, and C platforms.

In the third quarter of 2021, Spirit Energy’s daily production from the Statfjord area stood at approximately 21.000 barrels of oil equivalent per day.