By Andy Sambidge
Qatar Petroleum International acquires 40% of Centrica's natural gas assets in Canada
Qatar Petroleum International (QPI), the international arm and wholly owned subsidiary of Qatar Petroleum, will acquire 40 percent of UK energy giant Centrica's Canadian natural gas business for C$200 million ($183 million).
The assets will be placed into Centrica and QPI's existing 60:40 venture, the CQ Energy Canada Partnership, and will sit alongside assets that were jointly acquired from Suncor, announced in April 2013, a statement said.
This transaction is the second under the memorandum of understanding (MoU) signed between the two parties in December 2011, and fully aligns Centrica and QPI's interests in the Western Canadian Sedimentary Basin.
The signing ceremony was witnessed by Dr Mohammed Bin Saleh Al Sada, Minister of Energy and Industry and chairman of QPI, who welcomed it as an important development in the partnership between QPI and Centrica.
He said: "This agreement will help strengthen QPI's presence and strategic partnerships in North America, and boost Qatar's global diversification, expansion, and investment efforts."
Nasser Al-Jaidah, CEO of QPI, added: "We are pleased to have expanded our strategic alliance with our partner Centrica through this acquisition. This agreement demonstrates QPI's strong commitment to further our existing global partnerships and forge new opportunities where possible."
Sam Laidlaw, chief executive of Centrica, said: "I am delighted that we are further strengthening the relationship between Centrica and QPI.
"We look forward to continuing to work together as we consider investment opportunities in gas and power on both sides of the Atlantic."
Governance of the CQ Energy Canada Partnership joint venture will remain unchanged, with Centrica continuing to act as operator of the assets on behalf of the CQ Energy Canada Partnership.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.