QATAR: QPI buys into Canadian energy assets of Centrica

The assets will be held in a newly-established partnership between Centrica (60% share) and QPI (40% share), which will be operated by Centrica.

Dr Mohamed bin Saleh al-Sad, Minister of Energy & Industry, Qatar

Centrica and Qatar Petroleum International (QPI), QP’s international arm and wholly-owned subsidiary “have agreed to acquire jointly a package of  producing conventional natural gas and crude oil assets and associated infrastructure located in the Western Canadian Sedimentary Basin from Suncor Energy for C$1bn (£650mn, US$980mn) in cash”.

The acquisition is the first investment under the Memorandum of Understanding (MoU) signed between the two parties in December 2011.

The assets will be held in a newly-established partnership between Centrica (60% share) and QPI (40% share), which will be operated by Centrica.

The assets include proven and probable (2P) reserves estimated by the partners at 978bn cubic feet equivalent (90% natural gas), with estimated 2013 production of approximately 250mn cubic feet equivalent per day, equal to 15mn barrels of oil equivalent a year.

The assets are located principally in South and Central Alberta where they overlap with existing Centrica assets, providing the opportunity for cost savings in production and development, and in North East British Columbia.

The package also includes over 1mn acres of undeveloped land and there is significant potential for reserves and production upside through the use of horizontal drilling and multi-stage fracturing.

Centrica chief executive Sam Laidlaw 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.

“Today’s announcement marks another step in delivering the strategy we announced in February and strengthens the relationship between Centrica and QPI. We look forward to working together to further expand the scale and scope of our joint North American operations.”

QPI chief executive officer Nasser al-Jaidah said: “Fulfilling the vision of HH the Emir, Sheikh Hamad bin Khalifa al-Thani, of expanding our business beyond our borders, and under the guidance and support of HE the Minister of Energy & Industry, 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.”

QPI and ExxonMobil in new push for joint activities

Qatar Petroleum International and ExxonMobil yesterday signed a Memorandum of Understanding that expands their co-operation and seeks to provide for joint activities to evaluate unconventional natural gas resources in North America and certain global liquefied natural gas (LNG) opportunities.

The agreement aims to provide Qatar Petroleum International with potential opportunities to pursue prospects in a broad range of unconventional natural gas resources and associated liquids. No transactions have taken place thus far, and any transactions will be subject to future announcement.

“Over the past two decades, Qatar Petroleum and ExxonMobil have been working together to develop an unrivaled liquefied natural gas business in Qatar, supplying cleaner-burning natural gas to markets across the globe,” said HE  the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada, who is also chairman and managing director of QPI.

“Now we look forward to a new chapter in our relationship as we commit to exploring opportunities in North America and elsewhere.”

Andrew P Swiger, senior vice president of ExxonMobil Corporation said the new agreement represents a further milestone in the strong and successful relationship between the companies.

“This agreement provides a basis for broadening the collaboration and joint investment in natural gas and LNG projects around the world.”

Qatar Petroleum International CEO Nasser al-Jaidah said the co-operation with ExxonMobil supports Qatar Petroleum’s intention to expand its international portfolio in order to help meet the growing global demand for energy.

“The agreement signed today signifies our joint interest in expanding our partnership both domestically and internationally in order to address the growing and evolving role of natural gas, which continues to play a larger role in meeting the needs of an increasing population.”

Working together, Qatar Petroleum and ExxonMobil have been developing the world’s largest natural gas field not associated with oil, making Qatar the world’s leading exporter of LNG to markets across the globe.

Outside Qatar, the companies currently have joint interests in LNG terminals in the United Kingdom, Italy and the United States. ExxonMobil has a long-standing history in Qatar; its affiliates have operated in Qatar since 1955.

Source: Caye Global, Gulf Times


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