British energy group Centrica has announced plans to divest its oil and gas activities by the end of 2020 to focus on Energy Services and Solutions. The group also plans to sell its 20% stake in British nuclear power plants by the end of 2020, as part of its strategic shift. The proceeds from the exit will be used to fund restructuring costs and underpin Centrica's balance sheet.
Centrica had already spun off its oil and gas exploration and production (E&P) affiliate in 2017, and merged it with the Norwegian company Bayerngas Norge (the Norwegian subsidiary of Bayerngas, owned by Stadtwerke München (SWM)) into a new company named Spirit Energy (69% Centrica and 31% Bayerngas Norge). Spirit Energy encompasses Centrica’s assets in several countries (the United Kingdom, Netherlands and Norway) and Bayerngas Norge’s assets in the UK, Norway and Denmark. It has more than 600 mboe of resources (mainly gas) and a production of around 50 mboe/year.