UK Centrica in Breagh Gas Deal
Calgary-based Sterling Resources said late September 8 it has entered into a gas sales agreement with UK marketer Centrica to sell its share of gas production from the Breagh field in the North Sea.
The gas will be sold on a day-ahead basis at the UK’s National Balancing Point for a minimum of two years starting this October 1. This replaces a similar Sterling deal with Vitol expiring on that date.
Sterling’s net 30% share of Breagh’s 1.06bn m3 production in 2015 was 0.32bn m3. Ineos is the field’s operator, with a 70% interest.
Sterling chairman Jake Ulrich (Photo credit: Sterling Resources)
Sterling chairman and former CEO Jake Ulrich was a senior executive at Centrica from 1997 to 2008, first heading its Accord gas trading business, and later its upstream and power generation.
Sterling said in July that 75% of its gas production was hedged until end-2017, with 50% through 2018, noting that the current forward curve is now 5-10p/therm above its hedge exercise price.
Mark Smedley