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.

Advertisement - Article continues below

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."



Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
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
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

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

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020