QPI to acquire stake in Centrica’s Canadian natural gas business

Qatar Petroleum International (QPI) has signed a C$200m agreement to acquire 40% of Centrica’s Canadian natural gas business.

The assets will be operated in the existing venture between Centrica and QPI under the title, CQ Energy Canada Partnership. The new percentage will be added to the assets which were jointly acquired from Suncor Energy in 2013. Centrica will continue to act as the operator on behalf of the partnership.

The assets to be transferred into the CQ Energy Canada Partnership by Centrica had proven and probable reserves of 655 billion cubic feet equivalent as of 31 December 2013.

The transaction is the second under the memorandum of understanding signed between Centrica and QPI in December 2011, and aligns with their interests in the Western Canadian Sedimentary Basin (WCSB).

QPI chief executive officer Nasser Al-Jaidah said: "This agreement demonstrates QPI’s strong commitment to further our existing global partnerships and forge new opportunities where possible."

Upon completion of the transaction, the CQ Energy Canada Partnership will have 1,664 billion cubic feet equivalent of proven and probable reserves and current production of 390 million cubic feet equivalent a day.

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Image: The transaction is expected to be completed before the fourth quarter of the year. Photo: courtesy of Qatar Petroleum International.