Centrica announced that it has agreed to sell its entire portfolio of gas assets in Trinidad and Tobago to Shell for an initial cash consideration of $30 million (£24 million). The assets consist of a 17.3% interest in the producing NCMA-1 block and 80% and 90% operated interests respectively in the undeveloped blocks NCMA-4 and Block 22.
In addition to the initial consideration, Centrica will receive further payments subject to Block 22 and NCMA-4 reaching agreed project milestones.
The divestment is in line with Centrica’s strategy to focus its E&P activity in the UK, Netherlands and Norway and to exit its positions in Canada and Trinidad and Tobago, the UK-based company said. “The transaction is subject to government and partner approval and is expected to close in the first half of 2017.”

Backgrounds:

On 25-Feb-2010, Centrica announced that, through its subsidiary Centrica Resources (Armada) Ltd. (CRAL), it has signed an agreement with Suncor Energy, under which Centrica will acquire Suncor's Trinidad and Tobago portfolio of gas assets for US$380 million (£246 million) in cash. Centrica said that this acquisition provides the UK-based company “with its first producing LNG position and significant development opportunities for future, long-term LNG supplies.”
This portfolio of gas assets comprises a 17.3% stake in the North Coast Marine Area (NCMA-1) gas production area and equity interests in three blocks; Blocks 22, 1(a) and 1(b), for future development.
The NCMA-1 block currently supplies gas into the Atlantic LNG (ALNG) facility, and holds remaining working interests of 266 BCF of proven and probable (2P) reserves attributable to Centrica's 17.3% stake. This will provide Centrica with 60-70 MMCF/D of gas production in 2010. “Gas produced from NCMA-1 has been contracted to a third party on a long-term basis until 2023, achieving international gas prices with any additional benefits from diversion being shared between the partners.”
Gas development opportunities in Block 22 and Blocks 1(a) and 1(b) comprise a 90% and 80% operated interest respectively and contain significant contingent gas resources, with recoverable resources attributable to Centrica's equity stakes estimated at 1.34 TCF, according to Centrica.