Bloomberg News

Centrica Targeting 75 Million Barrels of Oil, Gas Yearly by 2016

December 01, 2011

Dec. 1 (Bloomberg) -- Centrica Plc, the U.K.’s biggest residential oil and gas supplier, plans to boost production to 75 million barrels of oil equivalent per year within the next five years.

The company, which agreed to pay Statoil ASA $1.6 billion for fields in the Norwegian North Sea last month, wants to increase output from 50 million barrels excluding the Statoil acquisition, Managing Director Mark Hanafin said at an investor day today. The company will spend about 100 million pounds ($157 million) a year on exploration, he said.

Adding gas-production assets will give Windsor, England- based Centrica more security in gas supply and offer a hedge against volatile gas prices. The utility also wants to increase its offshore wind-farm capacity by 300 percent to 560 megawatts by 2016, the executive said.

--Editors: Alex Devine, Ana Monteiro

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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