Business
Centrica And Qatar Petroleum International To Acquire Natural Gas And Conventional Crude Oil Business From Suncor Energy For C$1 Billion (US$1 Billion)
Builds on Direct Energy Upstream's Growth in North America HOUSTON and CALGARY, Alberta...
About this update from Suncor Energy Inc.
[{"type":"text","content":"\n\n\n\n\nBuilds on Direct Energy Upstream's Growth in North America\n\nHOUSTON and CALGARY, Alberta, April 15, 2013 /CNW/ - Centrica plc (LSE: CNA) and Qatar Petroleum International (QPI), the international arm and wholly owned subsidiary of Qatar Petroleum (QP) have reached an agreement with Suncor Energy (TSX: SU / NYSE: SU) to acquire a vast majority of its conventional natural gas and crude oil business in the Western Canadian Sedimentary Basin for C$1 billion (US$1 billion) in cash. The transaction is subject to regulatory approval, including the Canadian Competition Act and the Investment Canada Act, and is expected to close in the third quarter of 2013. \nThe business will be held in a newly established partnership between Centrica (60% share) and QPI (40% share), which will be operated by Centrica. The acquisition is the first investment under the Memorandum of Understanding (MoU) signed between the two parties in December 2011.\nCentrica and QPI will acquire this business, including all related facilities and infrastructure from Suncor Energy situated across multiple regions in Alberta, northeastern British Columbia and southern Saskatchewan. The business includes proven and probable (2P) reserves estimated by the partners at 978 billion cubic feet equivalent (bcfe) (90% natural gas), with estimated 2013 production of approximately 250 million cubic feet equivalent per day (mmcfe/d), equal to 15 million barrels of oil equivalent (mmboe) per annum.\nFollowing the close of the transaction, Centrica will be able to meet approximately 60% of the unregulated daily gas requirements of its growing Direct Energy customer base across North America. \nThe deal is the latest step in Centrica's and Direct Energy's effort to build a diversified, vertically integrated energy business to meet the energy needs of business and residential consumers across North America. At C$1 billion (US$1 billion), this is Centrica's largest acquisition in North America in over a decade, when the company, through its Direct Energy subsidiary acquired Enbridge Home Services in January 2002. \n\"In today's competitive energy environment this acquisition represents an ideal strategic fit for Centrica's existing upstream portfolio and skill sets,\" said Wes Morningstar, Senior Vice President with Centrica in Calgary. \"It also reinforces our strong commi...