UK Centrica to buy Norway gas assets from Marathon

LONDON, July 9 (Reuters) - Britain's Centrica Plc (CNA.L: Quote, Profile, Research) has agreed to buy a package of Norwegian gas and oil assets from U.S.-based Marathon Oil (MRO.N: Quote, Profile, Research) for $375 million in cash, the two companies said on Wednesday.

The parent company of Britain's largest household energy supplier British Gas will have to pay another $41 million in Norwegian asset taxes for the stakes in producing fields, discoveries and exploration prospects in the Heimdal area of the Norwegian North Sea.

"This investment is in line with our strategy to reduce the Group's exposure to movements in gas prices through securing additional upstream assets," Sam Laidlaw, Chief Executive of Centrica, said.

"It also increases the level of gas reserves to supply our British Gas customers and gives us our first producing interests in Norway, building on our existing exploration position."

Centrica said in a statement it would need to spend about another 125 million pounds ($247 million) to maximise the reserves potential of 165 billion cubic feet equivalent (bcfe) over the next four years.

On the effective date of the asset buy, Jan. 1, 2008, the immediately recognisable reserves were 100 bcfe, of which 70 per cent was gas.

Centrica has agreed to buy Marathon's 23.8 percent interest in the Heimdal field, its 46.9 percent interest in the Vale field; a 20 percent stake in the Byggve field and a 20 percent interest in the Skirne field.

In addition to those fields that are already producing, the UK energy supplier has bought a 50 percent interest in the Peik discovery and 20 percent of the Heimdal East discovery, the U.S. oil and gas company said.

The two companies expect to close the transaction, subject to Norwegian regulatory approval, towards the end of the third quarter of this year or early in the fourth quarter.

(Reporting by Daniel Fineren)