Norway’s Statoil (NYSE:STO) sold some of its gas production assets on the Norwegian Continental Shelf to Britain's second-biggest oil producer, Centrica, for $1.625 billion, the companies said on Monday.
Under the agreement, which is subject to customary closing conditions, Centrica will receive 117 million barrels of oil equivalent, which increases its production by 35,000 barrels of oil a day, up 25% from its previous portfolio.
"Much of the gas acquired through this transaction will also come to the U.K. market, providing further energy security for British Gas customers long into the future," Centrica CEO Sam Laidlaw said in a statement.
Also on Monday, Centrica, parent of household energy supplier British Gas, signed a 10-year gas purchase deal with Statoil that improves its production per quarter as well as its energy security.
The deal, which begins in 2015, secures sufficient gas to meet about 5% of total U.K. annual demand, which covers about 3.5 million homes. Currently, Britain is importing 50% of its gas requirements.
Separately, Norwegian oil giant Statoil was awarded an 80% stake in the Halmahera II block, a large offshore oil and gas site in eastern Indonesia. Niko Resources will hold the remaining 20% of the area that covers 8,000 square kilometers.