Spirit Energy’s parent company Centrica plc have announced the sale of the company’s 15% interest in the Cygnus gas field in the southern North Sea.
In a deal worth around £98 million, the sale follows the decision to sell 46.25% of Spirit’s interest in Cygnus which was completed in early October.
The company says the transaction was strongly aligned with Centrica’s focus on maximising value as it continues to reposition its infrastructure portfolio, delivering attractive upfront cash consideration and transferring long-term decommissioning liabilities.
Spirit Energy is currently converting its Morecambe gas fields in the east Irish Sea to create what will be the UK’s biggest carbon dioxide (CO2) store able to hold a gigatonne of gas.
Earlier this year the Government’s policy bank, the National Wealth Fund, announced a £28.6m equity investment in Peak Cluster Ltd to support the development of a planned carbon dioxide transport pipeline to the fields under the Irish Sea.
“This disposal generates value for our shareholders, is a significant step in streamlining Centrica’s portfolio, and will focus Spirit on developing the option to invest in Europe’s largest carbon storage project at Morecambe Net Zero,” Chris O’Shea, group chief executive of Centrica and chairman of Spirit Energy said.
“Our focus at Centrica is on creating value. By recycling capital we’re unlocking new investment opportunities in the UK and elsewhere, and accelerating the energy transition – delivering the energy needed today and powering tomorrow’s ambitions by energising a greener, fairer future.
“This disposal generates value for our shareholders, is a significant step in streamlining Centrica’s portfolio, and will focus Spirit on developing the option to invest in Europe’s largest carbon storage project at Morecambe Net Zero.
“These material UK investment opportunities will however depend upon having a regulatory framework, and a regulator, which is fit for purpose.”
This disposal will result in the Morecambe Hub – North Morecambe, South Morecambe and Rhyl – becoming Spirit’s principal producing asset.
The company says the primary focus will remain on the development of the Morecambe Net Zero carbon storage project, alongside safely and efficiently decommissioning its facilities and wells with minimum environmental impact.
