Centrica to operate £650m oil and gas venture

Centrica and Qatar Petroleum International (QPI) are to acquire natural gas and crude oil assets, plus associated infrastructure in the Western Canadian Sedimentary Basin, from Suncor Energy for £650m.

The cash 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 per cent) and QPI (40 per cent), which will be operated by Centrica. 

The assets are said to include proven and probable reserves estimated by the partners at 978 billion cubic feet equivalent (bcfe) (90 per cent natural gas), with estimated 2013 production of approximately 250 million cubic feet equivalent per day (mmcfe/d), equal to 15 million barrels of oil equivalent (mmboe) per annum.