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Centrica And Qatar Petroleum International To Acquire Natural Gas And Conventional Crude Oil Business From Suncor Energy For C$1

Centrica And Qatar Petroleum International To Acquire Natural Gas And 
Conventional Crude Oil Business From Suncor Energy For C$1 Billion (US$1 
Billion) 
Builds on Direct Energy Upstream's Growth in North America 
HOUSTON and CALGARY, Alberta, April 15, 2013 /CNW/ - Centrica plc (LSE: CNA) 
and Qatar Petroleum International (QPI), the international arm and wholly 
owned subsidiary of Qatar Petroleum (QP) have reached an agreement with Suncor 
Energy (TSX: SU / NYSE: SU) to acquire a vast majority of its conventional 
natural gas and crude oil business in the Western Canadian Sedimentary Basin 
for C$1 billion (US$1 billion) in cash. The transaction is subject to 
regulatory approval, including the Canadian Competition Act and the Investment 
Canada Act, and is expected to close in the third quarter of 2013. 
The business will be held in a newly established partnership between Centrica 
(60% share) and QPI (40% share), which will be operated by Centrica. The 
acquisition is the first investment under the Memorandum of Understanding 
(MoU) signed between the two parties in December 2011. 
Centrica and QPI will acquire this business, including all related facilities 
and infrastructure from Suncor Energy situated across multiple regions in 
Alberta, northeastern British Columbia and southern Saskatchewan. The business 
includes proven and probable (2P) reserves estimated by the partners at 978 
billion cubic feet equivalent (bcfe) (90% 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. 
Following the close of the transaction, Centrica will be able to meet 
approximately 60% of the unregulated daily gas requirements of its growing 
Direct Energy customer base across North America. 
The deal is the latest step in Centrica's and Direct Energy's effort to build 
a diversified, vertically integrated energy business to meet the energy needs 
of business and residential consumers across North America.  At C$1 billion 
(US$1 billion), this is Centrica's largest acquisition in North America in 
over a decade, when the company, through its Direct Energy subsidiary acquired 
Enbridge Home Services in January 2002. 
"In today's competitive energy environment this acquisition represents an 
ideal strategic fit for Centrica's existing upstream portfolio and skill 
sets," said Wes Morningstar, Senior Vice President with Centrica in Calgary.  
"It also reinforces our strong commitment to our operations in Western Canada. 
Growing our upstream gas operations is an important step to ensuring the 
company is a solid long-term partner to millions of residential and business 
customers across North America." 
Nasser Al-Jaidah, Chief Executive Officer of QPI, said: "Fulfilling the vision 
of His Highness the Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani, of 
expanding our business beyond our borders, and under the guidance and support 
of His Excellency the Minister of Energy & Industry, Qatar Petroleum Board 
Chairman and Managing Director Dr. Mohamed bin Saleh Al Sada, we are pleased 
to be advancing our important ongoing relationship with Centrica under the MoU 
through this joint acquisition. This investment in the Western Canadian 
Sedimentary Basin is a significant step in the development of QPI's global 
upstream business. We look forward to continuing to advance QP's overall North 
American energy business through the MoU and other initiatives." 
Centrica has been active in the Western Canadian Sedimentary Basin since 2000, 
and has increased its natural gas reserves by approximately 60 per cent with 
the 2010 acquisition of Suncor Energy's assets in the Wildcat Hills region of 
Alberta and related interests from Shell Canada Energy in 2011. In 2012, 
Centrica also acquired additional producing natural gas weighted assets in the 
Carrot Creek region of west central Alberta from Encana Corporation. 
About Direct Energy 
Direct Energy is one of North America's largest energy and energy-related 
services providers with over six million residential and commercial customer 
relationships. Direct Energy provides customers with choice and support in 
managing their energy costs through a portfolio of innovative products and 
services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading 
integrated energy companies, Direct Energy operates in 46 U.S. states plus the 
District of Columbia and 10 provinces in Canada. To learn more about Direct 
Energy, please visit www.directenergy.com. 
Notes to Editors: 


    --  The acquisition will be made through CQ Energy Canada
        Partnership, a newly formed Canadian partnership owned by
        Direct Energy Resources Partnership (60%), a wholly owned
        subsidiary of Centrica plc, and QPI Energy Canada Ltd. (40%), a
        Canadian corporate entity wholly owned by QPI.
    --  The transaction is subject to regulatory approval, including
        under the Canadian Competition Act and the Investment Canada
        Act, and is expected to close in the third quarter of 2013.
    --  The economic date of the transaction is 1 January 2013.
    --  Proven and probable reserves figures are as at 31 December
        2012.
    --  Direct Energy proven and probable reserves figures as at 31
        December 2012 were 646bcfe.

Micah Hirschfield, Direct Energy, +1 713 877 3805, 
micah.hirschfield@directenergy.com

http://www.directenergy.com

SOURCE: Centrica plc

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/April2013/15/c5238.html

CO: Direct Energy
ST: Alberta
NI: OIL UTI MNA 

-0- Apr/15/2013 06:14 GMT


 
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