Centrica, the UK’s largest utility company, is in the process of selling all of its Canadian oil and gas assets and exiting operations in the country, a spokesman said today.
Centrica and its joint venture partner, Qatar Petroleum, started the sales process in July, he said, adding it would dispose of the natural gas assets purchased from Suncor Energy in 2013 for C$1 billion (US $758.04million).
North American natural gas prices have plummeted since then due to oversupply and Centrica said last year it no longer saw Canadian operations, which make up around a third of the company’s production, as core to the business.
Centrica produces around 64,000 barrels of oil equivalent per day in Canada, of which 90% is natural gas.
The company’s operations in the country are focused on southern Alberta and Saskatchewan.
“We are focusing on Europe – Norway, the North Sea and Morecambe Bay,” the spokesman said, adding: “We have started disposal operations for Canadian assets but do not know when that’s
likely to close.”
Centrica employs around 500 people in Canada, whose energy sector has been roiled by mass layoffs and steep cuts in capital spending as companies have struggled to cope with the two-year oil price slump.
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