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Canada Pension Plan Investment Board and Vermilion Energy Inc. Announce Strategic Partnership in Corrib
Canada Pension Plan Investment Board and Vermilion Energy Inc. Announce Strategic Partners...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nCanada Pension Plan Investment Board and Vermilion Energy Inc. Announce Strategic Partnership in Corrib\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO and CALGARY, July 12, 2017\n\n\n\nTORONTO and CALGARY, July 12, 2017 /CNW/ - Canada Pension Plan Investment Board (\"CPPIB\") and Vermilion Energy Inc. (\"Vermilion\") (TSX, NYSE: VET) are pleased to announce a strategic partnership in the Corrib Natural Gas Field in Ireland (\"Corrib\"), whereby CPPIB will acquire Shell Exploration Company B.V.'s (\"Shell\") 45% interest in the project, with Vermilion operating the assets after completion of the acquisition.  Through its wholly owned subsidiary, CPP Investment Board Europe S.a.r.l., CPPIB has entered into a definitive purchase and sale agreement with Shell, to acquire 100% of Shell E&P Ireland Limited (\"SEPIL\"), which holds Shell's 45% interest in Corrib (the \"Acquisition\") for total cash consideration of €830 million, subject to customary closing adjustments and future contingent value payments based on performance and realized pricing.  The Acquisition, which remains subject to customary conditions and receipt of all necessary government consents, has an effective date of January 1, 2017 with closing anticipated in the first half of 2018.\n\nAt closing, Vermilion will assume operatorship, and CPPIB plans to transfer SEPIL along with a 1.5% working interest to Vermilion for €19.4 million (before closing adjustments).\n\nFollowing the transfer to Vermilion, ownership in Corrib would be as follows:\n\n\nCPPIB would hold a 43.5% non-operated interest\nVermilion would hold a 20% operated interest\nStatoil ASA would continue to hold a 36.5% non-operated interest\n\nThe transaction also contemplates two contingent payments; one linked to price and one linked to produced volumes:\n\n\nUp to €150 million contingent on NBP prices being above 2.03 Euro cents/kWh on an annual basis from 2018 to 2022; and\nUp to €100 million subject to exceeding certain production thresholds through 2025.\n\nCorrib is ...