Centrica plc has announced that subsidiaries of Spirit Energy Limited have agreed to sell a 46.25% interest in the Cygnus gas field to a subsidiary of Ithaca Energy plc.
The total value of the transaction is approximately £215 million, comprising a headline cash consideration of £116 million and the transfer of £99 million in decommissioning liabilities associated with the stake. Centrica, which owns 69% of Spirit Energy, expects its share of the headline consideration to be around £80 million.
The disposal has a commercial effective date of 1 January 2025 and is anticipated to complete in the second half of 2025, subject to customary regulatory approvals and interim adjustments.
Upon completion, Spirit Energy will retain a 15% interest in the Cygnus field, while Ithaca Energy’s operated interest will rise to 85%, making it the majority owner and operator of the asset.
This transaction aligns with Centrica and Spirit Energy’s strategy to maximise value from remaining reserves, deliver upfront cash, and transfer long-term liabilities.
It also supports Centrica’s ongoing transition away from gas production towards low-carbon infrastructure, with a particular focus on the Morecambe Net Zero carbon storage project—set to become Europe’s largest carbon capture and storage scheme.
Spirit Energy’s proven and probable (2P) reserves will decrease by 19.4 million barrels of oil equivalent (mmboe) as a result of the sale.
Cygnus, located in the Southern North Sea about 150km east of the Lincolnshire coast, is one of the UK’s largest gas fields and a key contributor to national energy security, supplying roughly 6% of the country’s gas demand at peak periods.
Chris O’Shea, Group Chief Executive of Centrica and Chairman of Spirit Energy, commented: “Our focus is on delivering value for Centrica’s colleagues, customers and shareholders through the energy transition.
“Through this disposal we are taking another step in reducing our exposure to gas production while accelerating the delivery of enhanced value to shareholders, allowing the Spirit team to further focus on delivering the largest carbon storage project in Europe at Morecambe Net Zero.”
Following the transaction, Spirit Energy will concentrate on the development of the Morecambe Net Zero carbon storage project, its remaining producing assets, and the safe decommissioning of its facilities and wells with minimal environmental impact.
