BRITAIN’S largest energy supplier, Centrica, has agreed to sell the CQ Energy Canada Partnership for C$722m (US$537m), aiming to focus its E&P activity solely on European assets.
The Canadian partnership, in which Centrica has a 60% holding, will be sold to a consortium comprising of Hong Kong-listed oil and gas producer MIE Holdings Corporation, The Can-China Global Resource Fund and Swiss commodity trading firm Mercuria.
CQ was formed following the joint acquisition of a portfolio of conventional natural gas and oil assets from Suncor Energy in September 2013. It owns producing assets throughout Alberta, British Columbia and Saskatchewan, 11 major processing facilities, around 950,000 net hectares of land and gathering systems exceeding 12,000km.
After adjustments, Centrica’s net share of the sale is expected to be around £240m (US$306m). It is believed that the proceeds will be used to reduce debt as it aims to lower its net debt to £2.5-3bn by the end of the year, from £3.5bn at the end of 2016.
A statement from Centrica, the parent firm of British Gas, said: “In line with its strategy announced in July 2015, the divestment means Centrica’s E&P activity will now be focused solely on European assets, with the group having completed the sale of its gas assets in Trinidad and Tobago in May 2017.”
The transaction is expected to close in the second half of 2017, subject to regulatory approvals.
Catch up on the latest news, views and jobs from The Chemical Engineer. Below are the four latest issues. View a wider selection of the archive from within the Magazine section of this site.