Centrica 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% of Centrica’s Canadian natural gas business for C$200m (US$183m). 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 assets to be transferred into the CQ Energy Canada Partnership by Centrica had proven and probable (2P) reserves of 655 bcf equivalent (bcfe) as on 31 December 2013 (19 bcm). After completion of this transaction, the CQ Energy Canada Partnership will have 1,664 bcfe (47 bcm) of proven and probable (2P) reserves effective as at 31 December 2013 and current production of 390 mcfe/d (11 mcm/d), with Centrica holding a 60% stake and QPI holding a 40% stake.