Centrica has announced the sale of its joint venture (JV) CQ Energy Canada Partnership for C$722m (£413m) in an all cash deal to a consortium made of MIE Holdings, The Can-China Global Resource Fund and Mercuria.
CQ Energy Canada Partnership is an exploration and production (E&P) joint venture in Canada between the British Gas owner Centrica and Qatar Petroleum International (QPI).
Centrica which holds a 60% stake in the Canadian E&P joint venture is expected to get a share of nearly £240m from the sale proceeds.
A statement from the company read: “In line with its strategy announced in July 2015, the divestment means Centrica’s E&P activity will now be focused solely on European assets, with the Group having completed the sale of its gas assets in Trinidad and Tobago in May 2017.”
Centrica had divested its entire gas asset portfolio in Trinidad and Tobago to Shell Exploration and Production for $30m.
The completion of the transaction relating to the sale of CQ Energy Canada Partnership is subject to customary regulatory approvals. These include clearances from the Canadian Competition Act and the Investment Canada Act, and also on a favorable voting from the shareholders of MIE.
If everything goes according to plan, the transaction is likely to be completed in the second half of this year.
CQ Energy Canada Partnership was established in May 2014 after QPI bought a stake of 40% for C$200million (£107million) in Centrica’s Canadian natural gas business.
Also included in the CQ Energy Canada Partnership are the oil and natural gas assets in the Western Canadian Sedimentary Basin that were jointly acquired by Centrica and QPI from Suncor Energy for C$1bn ($740m).
Image: Centrica to sell its Canadian E&P business. Photo courtesy of Centrica plc.