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Centrica to buy Suncor gas assets in Trinidad and Tobago for £246 mln

Centrica to buy Suncor gas assets in Trinidad and Tobago for £246 mln

British Gas parent company Centrica PLC (LSE: CNA) said it has signed an agreement with Suncor Energy (TSX: SU, NYSE: SU), under which Centrica will acquire Suncor’s Trinidad and Tobago portfolio of gas assets for £246 million in cash.

This acquisition provides Centrica with its first producing Liquefied Natural Gas (LNG) position and significant development opportunities for future, long-term LNG supplies,it said in a statement.

This portfolio of gas assets comprises a 17.3 percent stake in the North Coast Marine Area (NCMA-1) gas production area and equity interests in three blocks; Blocks 22, 1(a) and 1(b), for future development.

The NCMA-1 block currently supplies gas into the Atlantic LNG facility, and holds remaining working interests of 266 billion cubic feet (bcf) of proven and probable (2P) reserves attributable to Centrica’s 17.3 per cent stake. This will provide Centrica with 60-70 million standard cubic feet per day (mmscfd) of gas production in 2010.

Gas produced from NCMA-1 has been contracted to a third party on a long-term basis until 2023, achieving international gas prices with any additional benefits from diversion being shared between the partners.

Gas development opportunities in Block 22 and Blocks 1(a) and 1(b) comprise a 90 percent and 80 percent operated interest respectively and contain significant contingent gas resources, with recoverable resources attributable to Centrica’s equity stakes estimated at 1.34 trillion cubic feet (tcf). Centrica will consider options for the development of these gas discoveries together with appropriate equity partnerships. Blocks 1(a) and 1(b) of just under 0.2 tcf are subject to pre-emption from existing field partners.

Centrica CEO Sam Laidlaw said: “This is a significant move into one of the world’s most established LNG areas providing us with access to both gas producing and development blocks. Combined with last year’s acquisition of Venture Production, this agreement builds further on our upstream capability and marks a step change in our global gas position.”

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