The BOC Group and Duke Energy have agreed to terms on the sale of Duke Energy’s 30 per cent ownership interest in Compania de Nitrogeno de Cantarell (CNC).
CNC is a joint venture company that owns the world’s largest nitrogen complex and supplies nitrogen to maintain pressure and increase oil recovery in Mexico’s Cantarell oil field.
BOC has agreed to purchase Duke Energy’s stake in CNC for $59.7 million in cash, increasing BOC’s overall stake in CNC to 65 per cent. The deal is subject to lender approval and certain other conditions.
Duke Energy acquired its ownership interests in CNC when it acquired Westcoast Energy of Canada in 2002. Marubeni Corporation and Marubeni America Corporation will retain 25 percent and 10 percent, respectively.
CNC supplies nitrogen via pipeline to Pemex Exploracion y Produccion, the exploration and production arm of Petroleos Mexicanos (Pemex), Mexico’s national oil company.
According to BOC, since 2000, when Pemex began injecting nitrogen into the Cantarell field to reduce the reservoir’s natural decline of pressure, oil production has doubled to two million barrels per day (BPD). Pemex attributes an increase of some 600,000 BPD in oil production to the nitrogen injection.