Centrica Plc said June 9 it would sell its 60% stake in its Canadian oil and gas E&P joint venture to a consortium for about 240 million pounds (US$305 million).
The sale, to Hong Kong-listed oil and gas producer MIE Holdings Corp., The Can-China Global Resource Fund and Swiss commodity trading firm Mercuria, is part of Centrica's drive to focus its oil and gas E&P activity to Europe.
Analysts at Jefferies, who rate Centrica as "underperform", said the price tag was in line with their estimate of 267 million pounds.
The deal, subject to regulatory approvals, is expected to close in the second half of 2017.
Centrica's share of the proceeds will be used to reduce debt as it aims to lower its net debt to 2.5 billion to 3 billion pounds by the end of this year.
Last year, Centrica agreed to sell its gas assets in Trinidad and Tobago for $30 million to Royal Dutch Shell Plc (NYSE: RDS.A). (US$1 = 0.7863 pounds)
Recommended Reading
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
Tech Trends: SLB's Autonomous Tech Used for Drilling Operations
2024-02-06 - SLB says autonomous drilling operations increased ROP at a deepwater field offshore Brazil by 60% over the course of a five-well program.
Seadrill Awarded $97.5 Million in Drillship Contracts
2024-01-30 - Seadrill will also resume management services for its West Auriga drillship earlier than anticipated.
Well Logging Could Get a Makeover
2024-02-27 - Aramco’s KASHF robot, expected to deploy in 2025, will be able to operate in both vertical and horizontal segments of wellbores.
Remotely Controlled Well Completion Carried Out at SNEPCo’s Bonga Field
2024-02-27 - Optime Subsea, which supplied the operation’s remotely operated controls system, says its technology reduces equipment from transportation lists and reduces operation time.