Centrica and its subsidiary Spirit Energy have reduced their stake in the UK North Sea's biggest gas field to Ithaca Energy in a deal worth £215million.
Ithaca said the acquisition of an additional 46.25% stake in the Cygnus gas field - on a valuation of less than $7 per barrel on proven reserves - was "the type of deal we like".
Upon completion of the sale, likely to be January 2026, Ithaca will increase its operated interested in Cygnus to 85%, and Spirit Energy, retaining a 15% stake, and will focus on the development of the long-term Morecambe Net Zero carbon storage project.
Chris O'Shea, Group Chief Executive of Centrica and Chairman of Spirit Energy, said: "Our focus is on delivering value for Centrica's colleagues, customers and shareholders through the energy transition.
"Through this disposal we are taking another step in reducing our exposure to gas production while accelerating the delivery of enhanced value to shareholders, allowing the Spirit team to further focus on delivering the largest carbon storage project in Europe at Morecambe Net Zero.
"This is only one of many exciting opportunities across Centrica, aligned to the energy transition, as we continue to re-position our infrastructure portfolio, and we remain firmly focused on capturing the immense value on offer."
Cygnus is the largest UK Continental Shelf gas field and a key contributor to the UK's energy security.
Production started in 2016 with 11 wells currently producing, with three further infill wells approved, with the Valaris Norway on location with the first of the two firm wells to be spud in Q2 2025, and expected onstream during H2 2025 and H1 2026.
Yaniv Friedman, Executive Chairman at Ithaca, said: "Today's transaction with Spirit Energy provides further equity in a high-margin, high-quality producing gas asset that we understand deeply through our operatorship.
"By increasing our stake in Cygnus we add incremental reserves and production to our portfolio at attractive valuation metrics that ticks all of our investment criteria, without adding any complexity. We also see significant upside potential through further infill drilling beyond the next three approved wells. This is the type of deal we like."
The total value of the transaction to Spirit Energy is approximately £215million, including headline consideration of £116million and the transfer of £99million of decommissioning liabilities associated with the interest. Centrica's 69% share of headline consideration is expected to be £80million.
Following completion of the transaction, Spirit Energy said it 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.