|By PR Newswire||
|April 15, 2013 02:14 AM EDT||
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
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 29, 2016 09:15 AM EDT Reads: 695
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
May. 29, 2016 08:15 AM EDT Reads: 2,644
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
May. 29, 2016 08:15 AM EDT Reads: 2,725
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 29, 2016 07:00 AM EDT Reads: 2,285
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
May. 29, 2016 06:45 AM EDT Reads: 2,938
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 29, 2016 06:30 AM EDT Reads: 628
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 29, 2016 06:00 AM EDT Reads: 2,156
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 29, 2016 06:00 AM EDT Reads: 1,338
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 29, 2016 05:15 AM EDT Reads: 3,269
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 29, 2016 05:00 AM EDT Reads: 1,968
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 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 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...
May. 29, 2016 04:30 AM EDT Reads: 3,243
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 29, 2016 03:30 AM EDT Reads: 977
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 29, 2016 02:45 AM EDT Reads: 1,492
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 29, 2016 02:30 AM EDT Reads: 1,349
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 29, 2016 02:00 AM EDT Reads: 1,336