Centrica, Bayerngas Norge to Create E&P Joint Venture
17 July 2017 - 5:07PM
Dow Jones News
By Razak Musah Baba
LONDON--Centrica PLC (CNA.LN) and Stadtwerke Muenchen GmbH said
Monday they have agreed to combine Centrica's European oil and gas
exploration and production business with Bayerngas Norge AS to form
a newly incorporated joint venture.
Energy services group Centrica said it will contribute the whole
of its European exploration and production, or E&P, business
and make a series of deferred payments totaling 340 million pounds
($437.9 million), post tax, to the joint venture between 2017 and
2022, in exchange for a 69% share in the joint venture.
Bayerngas Norge's existing shareholders, led by Stadtwerked
Muenchen, known as SWM, and Bayerngas GmbH, will own 31%. Bayerngas
is SWM's upstream E&P vehicle.
The transaction is expected to close in the fourth quarter of
2017, subject to competition and regulatory approvals and other
conditions.
Centrica said the joint venture will create one of North-West
Europe's largest independent E&P companies. It is expected to
create GBP100 million to GBP150 million of net present value
through synergies from cost savings and portfolio optimization.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
July 17, 2017 02:52 ET (06:52 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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