Centrica sells Cygnus field stake to Ithaca Energy for £116m

(Sharecast News) - North Sea operator Ithaca Energy on Tuesday said it had bought an additional 46.25% stake in the Cygnus gas field from Centrica's Spirit Energy in a £116m deal. The move will lift Ithaca's operated interest in Cygnus, located in the Southern North Sea, about 150km east of the Lincolnshire coast, to 85%.

Cygnus was currently producing from 11 wells, with three further infill wells approved, Ithaca said in a statement. It is the largest UK Continental Shelf gas field.

"The transaction is strongly aligned with Centrica and Spirit Energy's strategy to maximise value from Spirit's remaining reserves, delivering attractive upfront cash consideration, and provides further value by transferring long-term liabilities," Centrica said in a separate statement.

"As an existing shareholder and the operator of Cygnus, Ithaca Energy is ideally positioned to take on majority ownership of the asset. Following completion of the transaction, Spirit Energy will remain focused on the development of the long-term Morecambe Net Zero carbon storage project, its remaining producing assets and safely and efficiently decommissioning its facilities and wells with minimum environmental impact."

Reporting by Frank Prenesti for Sharecast.com