Centrica in £190 million Norwegian oil and gas asset spree

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Today Centrica splashed out £190 million to grab oil and gas assets in Norway, which it claims will leave it less exposed to moves in wholesale energy costs and better able to control costs to UK consumers.

The company also sees the deal as a way to secure energy for the future as North Sea supplies dwindle.

Centrica is buying interests in the Heimdal area of the Norwegian North Sea from Texas-based Marathon Oil, America's fourthbiggest oil business.

Sam Laidlaw, Centrica's chief executive, said: "This investment is in line with our strategy to reduce the group's exposure to movements in gas prices through securing additional upstream assets."

Centrica, Britain's biggest domestic energy supplier, has admitted it is poised to ramp up prices. Soaring wholesale gas prices are blamed. It hopes through deals such as today's to boost reserves to protect customers from the worst of rising bills.

"This deal underlines our commitment to invest in energy supplies from across the globe as the UK's existing North Sea production declines," said Laidlaw.

Centrica is buying interests in three energy fields - 24% of Heimdal, 47% of Vale and 20% of Skirne/Byggve. Additional investment of £125 million over the next four years will be needed to get the most from the assets, it said.