Centrica and QPI complete C$1bn acquisition from Suncor

PUBLISHED: 02 Oct 2013 @ 12:53 | Comments (0) |

Will Centrica profits start heating up as a result?

Centrica (LSE:CNA) and Qatar Petroleum International (QPI) have completed a C$1 billion agreement with Suncor Energy to acquire a package of producing oil and natural gas assets in the Western Canadian Sedimentary Basin.

The assets include proven and probable (2P) reserves estimated by the partners at 978 billion cubic feet equivalent (90% natural gas), with estimated 2013 production of approximately 250 million cubic feet equivalent per day.

On behalf of the partnership, Centrica Energy will operate these assets, along with its existing portfolio, making it one of the top ten gas producers in the Western Canadian Sedimentary Basin. Centrica will operate 6,760 wells with proven and probable reserves of over 1,500 billion cubic feet equivalent, and employ around 600 people in Canada.

The package includes over 1 million acres of undeveloped land, a large seismic database and infrastructure, including gas processing plants.

Wes Morningstar, Senior Vice President, Centrica Energy Canada said that the “announcement marks the most significant step in our growth plans to date, securing our position as a leading producer of natural gas.

“In partnership with QPI, we have a great base on which to build here in Canada and this new deal provides exciting development opportunities for our projects and our talented team of people, as we invest to develop our business further” said Mr Moringstar.

The acquisition will be made through CQ Energy Canada Partnership, a newly formed Canadian partnership owned by Direct Energy Resources Partnership (60%), a wholly owned subsidiary of Centrica plc, and QPI Energy Canada Ltd. (40%), a Canadian corporate entity wholly owned by QPI.

QPI was established in 2005 as a wholly-owned subsidiary of Qatar Petroleum (“QP”), the state-owned national oil company of the State of Qatar. QPI was established to promote and advance the interest of the State of Qatar in the global energy arena of upstream, downstream, and gas and power. QPI’s multibillion portfolio of investments are global in scope, including partnerships and joint venture initiatives in Africa, North America (The United States and Canada), Singapore, the United Kingdom, Italy and Vietnam.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.