Slide 1: Strategic partnership with Statoil and Norwegian asset acquisition
Strategic partnership with Statoil and Norwegian asset acquisition 21 N November b 2011
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Centrica shares or other securities securities. This presentation contains certain forward-looking statements with respect to the financial condition, results, operatio
Slide 3: Sam Laidlaw, Chief Executive
Sam Laidlaw Chief Executive centrica
Slide 4: Transaction overview
Transaction overview Strategic partnership and Norwegian asset acquisition, significantly enhancing Centrica’s upstream scale • 10 year, year NBP linked gas supply contract from 2015 2015, boosting energy security for the UK • £1bn acquisition of producing and development assets in Norwegian North S
Slide 5: Gas supply contract
Gas supply contract • 10 year NBP-linked NBP linked contract, commencing October 2015 • 5bcm per annum, seasonally weighted i ht d • Secures sufficient gas to meet 5% of total UK demand demand, enough for 33.5m 5m British Gas homes 5
Slide 6: Asset acquisition
Asset acquisition • $1,525m (£965m) transaction transaction* KvB pipe • Focused portfolio of producing Kollsnes operated and non-operated assets in the h NNorwegian i sector – first operated production assets in St. Fergus Norway y – close proximity to current portfolio • All production uncontracted
Slide 7: Asset acquisition
Asset acquisition • Increases 2P reserves by 117mmboe (29%1) and increases production by Centrica 2P reserves (mmboe)1 700 34,000 boe/day (25%) +29% 29% – c70% gasgas, c30% liquids – package includes producing Norway Kvitebjørn asset (77% of reserves) anddVValemon l d development l t (18% of reserve
Slide 8: Production profile
Production profile Production (mmboe p.a.) (mboe per day) 80 200 70 Future developments Newly 60 Under development acquired 160 Producing fields 50 Exploration Future developments 120 40 30 Under development 80 Existing g 20 Other producing fields 40 10 Morecambe 0 0 2011 2012 2013 2014 2015 2016 20
Slide 9: Asset acquisition
Asset acquisition • Attractive returns – strong cash generation – earnings profile reflects Norwegian t regime tax i and d assett d development l t profile • Lengthens reserve life • Strengthens the post-tax energy hedge • Deploying capital to deliver value – significantly enhances upstream scale an
Slide 10: Memorandum of Understanding
Memorandum of Understanding • Strategic partnership with leading Norwegian player • MoU to consider exploration and production d ti partnership t hi iin existing i ti licences and new licensing rounds • Further enhances attractive growth prospects in the North Sea • Leverages technical capabilities
Slide 11: Q&A
Q&A centrica