Under the arrangement, Centrica will transfer to BG a 1.5% interest in the BG-operated Armada complex, thus increasing BG's total Armada equity to 46.77%. Centrica will also make a cash payment to BG of £7.32 million.
BG Executive Vice President for the UK Jon Wormley said: "The exchange of Rose for additional equity in Armada is part of BG's ongoing strategy to rationalize its UK portfolio. The swap will provide value enhancement by consolidating assets in areas that are core to our operations and where we therefore have greater strength. In this sense, it follows the pattern set by the major exchange of North Sea interests we agreed with BP last May"
The disposal of Rose is effective from 1 October 2002, and the acquisition of the new Armada equity from 1 January 2003. The agreement is subject to DTI and partner approval.
The Rose field is located in Block 47/15b of the North Sea, 55 kilometers east of the Easington terminal and eight kilometers northeast of the Amethyst field. It was discovered in 1998 by BG with the deviated well 47/10-6. A gas discovery in the "Rose R2" prospect within the same block was announced in July 2001.
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