Centrica plc, the parent company of British Gas, and Statoil ASA today signed an extension to their Memorandum of Understanding (MoU) to collaborate on gas-focussed exploration opportunities in Norway and the UK.
The original MoU, which was signed in November 2011, has already resulted in the companies bidding jointly in the 27th UK North Sea licensing round. Today’s agreement extends the MoU until June 2013.
Extending the MoU further cements the strategic relationship between the UK and Norway. Last year, Centrica signed a £13 billion 10-year gas supply agreement with Statoil that secures sufficient gas to meet around five per cent of total UK annual demand – around 3.5 million homes.
In the last few weeks, Centrica has also completed a major acquisition from Statoil of a package of producing and development oil and gas assets in the Norwegian sector of the North Sea for £1 billion, increasing its reserves by 29 per cent1.
Sam Laidlaw, Chief Executive, Centrica, said: “Centrica’s relationship with Statoil is vital for UK energy security as it brings together one of the world’s largest gas markets with one of the world’s largest gas exporters.
“Today’s announcement deepens this relationship and we look forward to working further with Statoil to explore untapped resources across the UK and Norway.”
Prime Minister David Cameron said: “I’m delighted that Centrica and Statoil are going to continue their successful gas exploration together in Norway and the UK. Gas plays a central role in powering our economy, and today’s agreement will ensure that British companies are at the forefront of discovering new energy sources, helping to secure diverse energy supplies well into the future.”
Source: Centrica, June 7, 2012