Firm considers teaming up to strengthen exploration

Centrica said yesterday that it was weighing up partnerships and joint ventures to bolster its exploration and production (E&P) business.

Centrica, whose brands include British Gas, spent £518million on E&P during 2016, a 28% reduction yearon-year.

Centrica’s investments include a stake in the southern North Sea Cygnus project, which delivered first commercial gas in December 2016.

Group chief executive Iain Conn said progress had been made in 2016 to move Centrica towards an E&P business focused on the UK, Netherlands and Norway.

The firm announced the divestment of its remaining portfolio of gas assets in Trinidad and Tobago in November and aims to offload its Canadian E&P business in 2017.

Mr Conn said Centrica would “evaluate all options” to strengthen its E&P business, “including through possible partnerships and joint ventures”.

It is understood that Centrica is not in the market for acquisitions, though more stable oil prices have boosted confidence in their investment decisions.

Centrica is also thought to be looking to step up exploration again, particularly near-field around existing infrastructure.

A spokesperson for Centrica said there were no plans for job losses at its E&P business, despite the group targeting £250million of savings in 2017.

The company laid off about 25 members of its Aberdeen European E&P team last year.

“No plans for job losses in its E&P business, despite savings target”