UK’s Centrica teams up with Qatar Petroleum to acquire Suncor Energy assets

UK energy group Centrica Plc (LON:CNA) and the international unit of Qatar Petroleum (QP) have signed a CAD1bn (USD982m/EUR751m) cash deal to jointly buy certain conventional natural gas and crude oil operations from Suncor Energy Inc (TSE:SU).

Under the terms, Centrica and Qatar Petroleum International (QPI) will purchase a package of producing conventional natural gas and crude oil assets along with the related infrastructure in the Western Canadian Sedimentary Basin.

The targeted activities will be held in a newly-formed entity which will be 60%-owned and operated by Centrica. The move follows the partners’ memorandum of understanding (MoU) that was signed in December 2011.

It is also part of Centrica’s attempt to build a diversified, vertically integrated energy operation and help meet the energy needs of consumers throughout North America, it said.

The transaction is awaiting regulatory clearance and is expected to be completed in the third quarter.