Centrica, Statoil Extend Exploration Agreement

British Gas parent Centrica has announced today that it has extended an agreement with Statoil to explore for gas in the UK and Norway.

The extension furthers a Memorandum of Understanding (MoU) previously signed between the two companies in November of last year, extending the agreement period to June 2013. Centrica says the continuing cooperation with Statoil will help to ensure security of supply to the UK as well as the development of new sources.

Already under the agreement, the two companies have jointly sought to expand their assets in the UK, culminating in joint bidding in the most recent UK North Sea licensing round.

"Centrica’s relationship with Statoil is vital for UK energy security as it brings together one of the world’s largest gas markets with one of the world’s largest gas exporters," Chief Executive of Centrica Sam Laidlaw said. "Today’s announcement deepens this relationship and we look forward to working further with Statoil to explore untapped resources across the UK and Norway."

This is the most recent in a number of deals signed between the two companies in recent years, strengthening ties between the two countries. Last month saw the completion of a divestment of a number of Statoil's assets on the Norwegian shelf, a deal which granted Centrica access to several fields, including the Heimdal field. The deal was made for £1 billion.

British Prime Minister David Cameron also welcomed the extension of the MoU today, saying the cooperation between the two companies was vital to the British gas market.

"I’m delighted that Centrica and Statoil are going to continue their successful gas exploration together in Norway and the UK," he said. "Gas plays a central role in powering our economy, and today’s agreement will ensure that British companies are at the forefront of discovering new energy sources, helping to secure diverse energy supplies well into the future."