Centrica, Qatar company acquire assets from Suncor for $1 billion

CALGARY – Centrica PLC of Britain and Qatar Petroleum International have reached an agreement with Suncor Energy to acquire most its conventional natural gas and crude oil assets in Western Canada for $1 billion in cash.

Suncor (TSX:SU) says the transaction, which includes properties in Alberta, northeast B-C and southern Saskatchewan, is subject to regulatory approval and is expected to close in the third quarter of 2013.

The business will be held in a newly established partnership between Centrica and QPI, awholly owned subsidiary of Qatar Petroleum.

Centrica, which will hold a 60 per cent share, will be operate the business.

It’s the first deal under a Memorandum of Understanding signed between the two parties in December 2011.

Suncor says the business includes proven and probable reserves estimated at 978 billion cubic feet equivalent of gas and will produce about 250 million cubic feet per day this year.