Centrica and Bayerngas merge their upstream businesses

Centrica E&P and Bayerngas Norge are merging to form a new mid-cap E&P company. The joint venture will combine Centrica's upstream assets in the UK, Norway and the Netherlands with Bayerngas Norge's assets in the UK, Norway and Denmark. There is overlap between the two portfolios, leaving room to create synergies. The JV will top its peer group rankings in 2018, with production expected to be around 160,000 boe/d. Big deals have transformed the European upstream scene over the last year. A new generation of mid-sized producers has emerged including: Aker BP, Point Resources, Chrysaor, INEOS and Neptune. The aim is to access opportunities in the space left behind by the Majors and other large companies. The scale of the company is important, as smaller companies tend to be able to only access one opportunity at a time. In the case of Centrica and Bayerngas, the message is definitely 'stronger together'.