A major new oil and gas company has been launched.

Spirit Energy, a joint venture which combines Centrica’s exploration and production business with Bayerngas Norge, has started trading as an independent oil and gas operator.

Production from the combined portfolios is expected to be around 50 million barrels of oil equivalent (mmboe) from 27 fields this year.

The new firm is to invest between £400 million and £600 million per year to deliver medium term production of around 45mmboe to 55mmboe.

Iain Conn, Centrica’s Group Chief Executive said: “With the creation of , we have now completed the first phase of our portfolio transformation as we reallocate resources towards our customer-facing businesses, leaving Centrica well-positioned to deliver longer term returns and growth.”