British Gas owner Centrica launches Spirit Energy with Bayerngas Norge | City A.M.

Centrica has launched a new company as a jont venture with Norwegian energy firm Bayerngas Norge.

Spirit Energy, an exploration and production (E&P) company, is the result of a combination of Centrica’s E&P business and Bayerngas.

Former shareholders in Bayerngas now own 31 per cent of the newly formed company and Centrica owns the other 69 per cent.

By combining the two businesses, the total 2017 production is expected to reach 50m barrels of oil equivalent from 27 producing fields.

Ian Conn, chief executive of Centrica, said: “With the creation of Spirit Energy we have now completed the first phase of our portfolio transformation as we reallocate resources towards our customer-facing businesses, leaving Centrica well-positioned to deliver longer-term returns and growth.”

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Centrica has also indicated that Spirit Energy’s birth could heralds further possibilities for participating in industry consolidation.

Spirit Energy’s CEO Chris Cox commented: “Now that both businesses have been brought together, these teams and complementary portfolios set us up to be a strong and sustainable E&P business, built for the long-term and committed to Europe.”

He will be joined by a new top team, including four appointees from Centrica and two from Bayerngas’s leading shareholder Stadtwereke München.

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