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Centrica hires advisors for Spirit Energy sale: Bloomberg
Posted on Thursday, 17 October 2019 09:38
Centrica has hired financial and accountancy advisors for the auction of a 69.0 per cent stake in Spirit Energy that could value the whole of the UK exploration and production (E&P) company at over USD 2.00 billion, Bloomberg reported.

Goldman Sachs is helping the country’s largest energy provider on the proposed divestment while KPMG is charged with the audit portion of the potential deal, sources with knowledge of the situation told the news provider.

The financial advisor and the Winsor-headquartered electricity and gas supplier declined commented when contacted by Bloomberg, while a representative of the subsidiary said the company “support the sales process as appropriate”.

Spirit Energy was created in 2017 following the combination of Centrica’s E&P business and Bayerngas Norge, of which the former shareholders, led by Stadtwerke München and Bayerngas, own the remaining 31.0 per cent stake.

The business has teams based across the UK, Norway, Netherlands and Denmark that oversee operations in Morecambe Bay, the North Sea and the Norwegian Sea.

Spirit Energy’s production was down 2.0 per cent in the first six months of 2019 to 24.50 million barrels of oil equivalent (mmboe) (H1 2018: 25.10 mmboe), with a slight increase in gas production volumes offset by lower liquids output.

In March 2019, the Oda field, the group’s first development as the operator on the Norwegian Continental Shelf, came online five months earlier than originally planned and under budget.

Centrica said it’s the half-year report it expects to exit its interest in Spirit Energy - via a trade sale - by the end of 2020.

The group added E&P is not a strategically core business area and is not aligned with the group’s global transition to a lower carbon energy mix.

Zephyr, the M&A database published by Bureau van Dijk, shows 883 deals targeting the global oil and gas extraction sector have been announced in 2019 to date.

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