News listings

energy-pedia general news

Centrica and Bayerngas Norge to create E&P joint venture

17 Jul 2017

Photo - see caption

Centrica and Stadtwerke München ('SWM') have reached an agreement to combine Centrica’s European oil and gas exploration and production ('E&P') business with Bayerngas Norge to form a newly incorporated joint venture and create a leading independent European E&P company. The Joint Venture will have two shareholding entities.  Centrica will own 69% and Bayerngas Norge’s existing shareholders, led by SWM and Bayerngas GmbH, will own 31%. The effective date of the transaction is 1 January 2017 and it is expected to close in the fourth quarter of 2017, subject to competition and regulatory approvals and other conditions.

The Joint Venture will create a strong and sustainable European E&P business by combining Centrica’s cash-generative and relatively near-term production profile with Bayerngas Norge’s more recently on-stream producing assets and development portfolio. The strategic rationale for the transaction is similar for both Centrica and SWM:

  • Like-minded shareholders with strategic alignment on the role of E&P.
  • Combines a complementary mix of producing and development assets with strong positions in the UK, Netherlands, Norway and Denmark.
  • Creates a robust, self-financing entity with an attractive financial profile, enabling organic and inorganic reinvestment and distributions.
  • £100-150 million of net present value (NPV) expected through synergies from cost savings and portfolio optimisation.
  • Provides the opportunity to strengthen the entity through further consolidation and joint ventures, including the potential for an initial public offering (IPO) in the medium term.

Iain Conn, Group Chief Executive of Centrica, said:

'As part of our strategy of 2015, we have been aiming to develop a more focused and stronger E&P business which will contribute to the resilience of the Group while limiting Centrica’s E&P participation. Alongside the recently-announced disposals of our Canada and Trinidad & Tobago assets, this joint venture creates a larger, more sustainable and more capable European E&P business and brings together like-minded shareholders who have a shared strategic vision on the role of E&P.'

'As one of the largest independent E&P companies in North-West Europe, the new entity will have the possibility to participate in further consolidation and joint ventures, and creates future optionality for Centrica’s shareholders.'

Florian Bieberbach, Chief Executive of Stadtwerke München, said:

'We are convinced that by combining our E&P activities we will create an even stronger and more sustainable business. With its similar background and strategy, Centrica is an ideal partner to develop and grow this joint venture together.'

Click here for full announcement

Source: Centrica

Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Publicly Available Deals

See all deals...

Subscriber Only Deals

Current deals: 1654
Completed deals: 4766

Company Profiles

Current Company Profiles: 2544

Corporate Activity

Current Corporate Activity articles: 3002

Companies Looking

Current number of articles: 417

Company Sales

Current Company Sales articles:1207


Current Geostudies articles: 547

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

count geophysics
Lynx Information Systems
SLR Consulting logo
Rose & Assocs 149
Union Jack Oil 149
EP Consult Energies
RSK Logo 149
Government of South Australia
KL Publishing
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675