Centrica all set to wrap up Spirit sales

UK energy group Centrica reported on May 30 that all conditions were satisfied to complete its sale of upstream unit Spirit Energy's assets to Sval Energi and Equinor.

For an initial $1.1bn sum, Centrica is divesting Spirit's Norwegian assets to Sval, backed by Norwegian private equity group HitecVision, and its 19.8% stake in Norway's Statfjord field to Equinor. The transaction will be completed on May 31, Centrica said.

The buyers will take on all decommissioning liabilities, which amount to £800mn ($1bn), Centrica said. Depending on commodity price, the final headline consideration for the transaction could amount to $1.2bn.

"Spirit Energy will now focus on maximising delivery of its gas production for the UK, repurposing assets for the energy transition and decommissioning activities," Centrica said.

First announced in December last year, Spirit's divestments mark the company's withdrawal from Norway. The company will continue to operate in the UK and the Netherlands.