Monday, October 12, 1998 Published at 11:11 GMT 12:11 UK
Business: The Company File
Centrica buys PowerGen North Sea
PowerGen's North Sea fields will pass to Centrica
Gas producer Centrica, better known as British Gas, has announced the £248m ($400m) purchase of PowerGen's North Sea oil and gas business.
PowerGen North Sea has interests in eight fields in both the North and Irish Seas, producing 86% gas and 14% oil overall.
Centrica chief executive Roy Gardner said the acquisition would help the company lift its primary production assets, a strategy previously declared.
"These assets represent an extremely good fit with our current gas supply portfolio and future requirements for the competitive energy market beyond 2001," he said.
The 1998 forecasts for the businesses predict gas production of 70m cubic feet per day and oil output of 6,000 barrels a day.
In a statement, PowerGen said the sale was conditional on the confirmation of certain issues by the Secretary of State for Trade and Industry, Peter Mandelson.
PowerGen expected the deal to be completed next month after putting North Sea up for tender back in May.
The Company File Contents