British energy utility Centrica has agreed to sell its joint venture with Qatar Petroleum, the CQ Energy Canada Partnership, to a consortium of MIE Holdings Corporation, The Can-China Global Resource Fund and Mercuria, for C$722m (US$537m). The CQ Energy Canada Partnership covers oil and gas exploration and production assets in Canada, that the two companies acquired from Suncor Energy in 2013.
Canadian operations used to make up around 1/3 of Centrica's gas production but the recent fall in gas prices due to oversupply in North America has reduced the profitability of Canadian assets. The company no longer considers Canada as core to the business and will now focus on Europe, especially on Norway, the North Sea and the Morecambe Bay.
The transaction is subject to customary regulatory approvals and to approval from MIE’s shareholders. The transaction is expected to close in the second half of 2017.