Centrica, Qatar Petroleum sign deal to acquire gas and crude oil assets in Canada

UK-based Centrica and Qatar Petroleum International (QPI), a wholly-owned subsidiary of Qatar Petroleum (QP), have signed an agreement to acquire natural gas and crude oil assets and associated infrastructure in the Sedimentary Basin in western Canada, for $1bn.

This latest acquisition is the first investment for both the companies, after signing the Memorandum of Understanding (MoU) in December 2011.

The acquired assets are expected to contain about 978 billion cubic feet of proven and probable gas reserves, with production capacity of about 250m cubic feet equivalent per day, which is equal to 15 million barrels of oil equivalent per annum.

The assets are situated near to Centrica assets in south and central Alberta, and in north-east British Columbia.

The acquisition also includes about one million acres of under-developed land, which is expected to have potential reserves.

Centrica chief executive Sam Laidlaw said the investment is the first one with QPI under the MoU.

"The acquisition provides attractive returns in a region we know well, and significantly increases the size and quality of our portfolio," Laidlaw added.

QPI CEO Nasser Al-Jaidah said that the investment in the Western Canadian Sedimentary Basin will play a crucial role in the development of the company’s global upstream business.

"We look forward to continuing to advance QP’s overall North American energy business through the MoU and other initiatives," Al-Jaidah added.

---

Image: Centrica and Qatar Petroleum International have signed an agreement to acquire natural gas and crude oil assets in the Sedimentary Basin in Western Canada. Photo: Courtesy of Uploader.