Centrica, QPI to buy Suncor gas properties

A joint venture of Centrica PLC and Qatar Petroleum International (QPI) has agreed to acquire the conventional part of Suncor Energy’s natural gas business in western Canada for $1 billion (Can.).

Centrica estimates production covered by the agreement at 250 MMcfd of natural gas equivalent, 90% gas. It estimates proved plus probable gas-equivalent reserves at 978 bcf.

The properties are in Alberta, northeastern British Columbia, and southern Saskatchewan.

Not covered are most of Suncor’s unconventional gas properties in the Montney region of British Columbia or its Wilson Creek unconventional oil assets in Alberta.

Steve Williams, Suncor president and chief executive, said the agreement reflects “commitment to capital discipline and aligning assets with strategic objectives.”

For the buyers, the agreement, if approved by government agencies, would be the first investment under a memorandum of understanding signed in December 2011.

Centrica holds a 60% share of the partnership and is operator. QPI holds the rest.

The assets to be acquired in central and southern Alberta overlap existing Centrica acreage.

The package includes more than 1 million acres of undeveloped land for which Centrica sees potential for horizontal drilling and multistage fracturing.

Centrica estimates contingent resources of the acquisition properties at more than 3 tcf of gas equivalent.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...