Centrica forms new joint venture with Bayerngas

Frank Prenesti WebFG News | 17 Jul, 2017 07:22 - Updated: 11:01 | | |

BG Group Metro 1 drillship Tanzania oil & gas
  • 163.20
  • -1.57%-2.60
  • Max: 166.10
  • Min: 162.50
  • Volume: 21,924,992
  • MM 200 : n/a
17:17 17/11/17
  • 7,380.68
  • -0.08%-6.26
  • Max: 7,406.53
  • Min: 7,356.16
  • Volume: 0
  • MM 200 : n/a
17:30 17/11/17
  • 1,509.10
  • -0.31%-4.67
  • Max: 1,514.95
  • Min: 1,504.10
  • Volume: 0
  • MM 200 : n/a
17:25 17/11/17
  • 4,102.67
  • -0.12%-4.73
  • Max: 4,116.61
  • Min: 4,089.64
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 4,051.78
  • -0.11%-4.62
  • Max: 4,065.06
  • Min: 4,039.36
  • Volume: 0
  • MM 200 : n/a
17:25 17/11/17
  • 5,305.48
  • -1.54%-83.19
  • Max: 5,388.67
  • Min: 5,287.35
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17

Centrica and Stadtwerke München (SWM) have agreed to combine Centrica's European oil and gas exploration and production business with Bayerngas Norge to form a new joint venture.

Centrica will own 69% and Bayerngas Norge's existing shareholders, led by SWM and Bayerngas GmbH, will own 31%. In a statement, the company said the deal would allow it to strengthen the entity through "further consolidation and joint ventures, including the potential for an initial public offering (IPO) in the medium term".

The joint venture will combine Centrica's assets in the UK, Netherlands and Norway and Bayerngas Norge's assets in the UK, Norway and Denmark with approximately 66% of total reserves and resources comprising natural gas.

"In creating the Joint Venture, the objective of the parties is to create a sustainable exploration and production business with a resilient capital structure, which will be capable of self-financing through operating cash flow in a range of commodity price environments including the Centrica low case of $35/barrel Brent Oil and 35p/therm UK NBP gas," Centrica said in a statement.

It added that is expected to see £100m-£150m in cost savings. Centrica will contribute the whole of its European E&P business and make a series of deferred payments totalling approximately £340m, post tax, to the venture between 2017 and 2022, in exchange for a 69% share.

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.