Centrica snaps up Canadian oil and gas assets

Utility group Centrica, which owns the British Gas business, is buying several natural gas and crude oil assets in Canada jointly with Qatar Petroleum International (QPI).

Utility group Centrica, which owns the British Gas business, is buying several natural gas and crude oil assets in Canada jointly with Qatar Petroleum International (QPI).

The two groups will pay a combined C$1.0bn (£650m) in cash for the assets, which will be 60% owned and operated by Centrica.

The assets and associated infrastructure are located in South and Central Alberta in the Western Canadian Sedimentary Basin and are currently owned by Suncor Energy. They overlap with existing Centrica assets and are expected to provide the opportunity for cost savings.

Proven and probable reserves estimated by the partners are 978bn cubic feet equivalent of gas, averaging 250m cubic feet equivalent per day, equal to 15m barrels of oil equivalent per annum.

The deal is the first investment under the memorandum of understanding (MoU) signed between Centrica and QPI in December 2011.

Sam Laidlaw, the Chief Executive Officer of Centrica, said: "I am delighted to achieve our first investment with QPI under the MoU, and the establishment of a new partnership in North America. The acquisition provides attractive returns in a region we know well, and significantly increases the size and quality of our portfolio.

"It also presents exciting development opportunities, with the potential to improve returns further."

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020