The owner of British Gas is spinning off its oil and gas production business into a new joint venture with Bayerngas Norge, of Germany, with a view to a potential initial public offering within two to five years.
The deal forms part of a strategic shift by Iain Conn, Centrica’s chief executive, to focus on its core customer- facing businesses and to reduce its exposure to the exploration and production operations pursued by Sam Laidlaw, his predecessor.
The new, yet-to-be-named company will boast the biggest production of any independent European explorer and producer, ahead of the likes of Aker BP, Maersk Oil, Chrysaor and Neptune, Mr Laidlaw’s new company.
It will rank fourth among the European independents in terms of reserves, with gas accounting for