Centrica plc and Qatar Petroleum International (“QPI”), the international arm and wholly owned subsidiary of Qatar Petroleum (“QP”), have reached an agreement whereby QPI will acquire 40 per cent of Centrica’s Canadian natural gas business for C$200million (£107million).
The assets will be placed into Centrica and QPI’s existing 60:40 venture, the CQ Energy Canada Partnership, and will sit alongside assets that were jointly acquired from Suncor Energy, announced in April 2013.
This transaction is the second under the Memorandum of Understanding (MoU) signed between the two parties in December 2011, and fully aligns Centrica and QPI’s interests in the Western Canadian Sedimentary Basin (WCSB).
The signing took place under the patronage of His Excellency Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry and Chairman of the Board of QPI, who welcomed the agreement as an important development in the partnership between Centrica and QPI.
Sam Laidlaw, Chief Executive of Centrica, said: “I am delighted that we are further strengthening the relationship between Centrica and QPI. We look forward to continuing to work together as we consider investment opportunities in gas and power on both sides of the Atlantic.”
Nasser Al-Jaidah, Chief Executive Officer of QPI, said: “We are pleased to have expanded our strategic alliance with our partner Centrica through this acquisition. This agreement demonstrates QPI’s strong commitment to further our existing global partnerships and forge new opportunities where possible.”
Governance of the CQ Energy Canada Partnership joint venture will remain unchanged, with Centrica continuing to act as operator of the assets on behalf of the CQ Energy Canada Partnership.
Centrica Investor Relations: 01753 494900
Centrica Energy Media Relations: 07789 570598
QPI Corporate Development: 00974 4452 0122
Notes to Editors:
- The effective date of the Centrica / QPI transaction is 1 January 2014. The transaction is expected to close before the fourth quarter of 2014, subject to regulatory approval.
- The assets to be transferred into the CQ Energy Canada Partnership by Centrica had proven and probable (2P) reserves of 655billion cubic feet equivalent (bcfe) as at 31 December 2013.
- After completion of this transaction, the CQ Energy Canada Partnership will have 1,664bcfe of proven and probable (2P) reserves effective as at 31 December 2013 and current production of 390mmcfe/d, with Centrica holding a 60 per cent stake and QPI holding a 40 per cent stake.
- In December 2011, Centrica and QPI signed a Memorandum of Understanding to seek opportunities to invest jointly in energy-related investments.
- In April 2013, Centrica and QPI announced the C$1 billion acquisition from Suncor of a package of producing conventional natural gas and crude oil and associated infrastructure in the WCSB.
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 Qatar Petroleum in the global energy arena of upstream, downstream, and gas and power.
QPI, as part of Qatar’s global diversification, expansion, and investment, and through its strategic partnership and ventures with major energy players worldwide, is carving a pivotal role as an international energy investor.
QPI has built a reputation in upstream, downstream petrochemicals and gas & power by exploring, discovering and capitalizing on investment opportunities and acquisitions. QPI’s multibillion portfolio of investments are global in scope, including partnerships and joint venture initiatives in the United States, Canada, United Kingdom, Italy, Greece, Singapore, Vietnam, China, Egypt, The Democratic Republic of Congo, and Mauritania.
For more information on QPI, please visit www.qpi.com.qa