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British energy firm Centrica and state-owned Qatar Petroleum International have agreed to buy Canadian oil and gas assets from Suncor Energy Inc. for CAN$1 billion (749 million euros), the pair said on Monday.
The deal, worth the equivalent of £650 million or US$980 million, covers assets that are located in the Canadian regions of Alberta, northeastern British Columbia and southern Saskatchewan.
"Centrica plc and Qatar Petroleum International, the international arm and wholly owned subsidiary of Qatar Petroleum (QP), have agreed to acquire jointly a package of producing conventional natural gas and crude oil assets and associated infrastructure located in the Western Canadian Sedimentary Basin from Suncor Energy for CAN$1 billion in cash," the two groups said in a statement.
The acquisition is meanwhile the first investment made under the memorandum of understanding agreement that the two groups signed in December 2011.
The Suncor assets will be held in a new joint venture that will be 60-percent owned by Centrica and 40-percent owned by QPI. It will be operated by Centrica.