Welcome!

News Feed Item

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, April 15, 2013 /PRNewswire/ -- 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.

The 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.

Centrica 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.

Following 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.

The 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.

"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 commitment to our operations in Western Canada. Growing our upstream gas operations is an important step to ensuring the company is a solid long-term partner to millions of residential and business customers across North America."

Nasser Al-Jaidah, Chief Executive Officer of QPI, said: "Fulfilling the vision of His Highness the Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani, of expanding our business beyond our borders, and under the guidance and support of His Excellency the Minister of Energy & Industry, Qatar Petroleum Board Chairman and Managing Director Dr. Mohamed bin Saleh Al Sada, we are pleased to be advancing our important ongoing relationship with Centrica under the MoU through this joint acquisition. This investment in the Western Canadian Sedimentary Basin is a significant step in the development of QPI's global upstream business. We look forward to continuing to advance QP's overall North American energy business through the MoU and other initiatives."

Centrica has been active in the Western Canadian Sedimentary Basin since 2000, and has increased its natural gas reserves by approximately 60 per cent with the 2010 acquisition of Suncor Energy's assets in the Wildcat Hills region of Alberta and related interests from Shell Canada Energy in 2011. In 2012, Centrica also acquired additional producing natural gas weighted assets in the Carrot Creek region of west central Alberta from Encana Corporation.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with over six million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 U.S. states plus the District of Columbia and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.

Notes to Editors:

  • The acquisition will be made through CQ Energy Canada Partnership, a newly formed Canadian partnership owned by Direct Energy Resources Partnership (60%), a wholly owned subsidiary of Centrica plc, and QPI Energy Canada Ltd. (40%), a Canadian corporate entity wholly owned by QPI.
  • The transaction is subject to regulatory approval, including under the Canadian Competition Act and the Investment Canada Act, and is expected to close in the third quarter of 2013.
  • The economic date of the transaction is 1 January 2013.
  • Proven and probable reserves figures are as at 31 December 2012.
  • Direct Energy proven and probable reserves figures as at 31 December 2012 were 646bcfe.

SOURCE Centrica plc; Direct Energy

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"We have several customers now running private clouds. They're not as large as they should be but it's getting there. The adoption challenge has been pretty simple. Look at the world today of virtualization vs cloud," stated Nara Rajagopalan, CEO of Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
I’m going to cry tonight, long and hard. I’ll do so as I remember and mourn Jeremy Geelan. I knew Jeremy for almost 20 years, from the time he showed up one day at Cloud Expo’s headquarters in Bergen County, New Jersey, and went to work. The show wasn’t called Cloud Expo then, of course – it was still known as Java Edge, a pioneering event that grabbed developers, architects, and enterprise IT users alike for twice-yearly confabs. Jeremy didn’t have a job there, or even a job offer. He was s...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...