The agreement will see Centrica taking additional equity in gas fields which it already operates, following its acquisition of Newfield UK in September 2007. The investment, after associated capital expenditure, is expected to add a further 32 billion cubic feet of reserves to Centrica’s portfolio over the next three years.

Following completion of the deal, which is conditional on certain third party consents, Centrica will hold a 92.5% interest in the producing Grove field and a 90% interest in the Seven Seas development, the Sloop gas discovery and associated exploration acreage.

Sam Laidlaw, CEO of Centrica, said: This agreement will build on our acquisition of Newfield UK and gives us further interests in gas assets where we already have a strong position. It also reaffirms our continued commitment to additional upstream investment to increase our level of energy resources to supply our British Gas and European customers.