MIE Holdings Corporation (HKSE: 1555), Can-China Global Resources Fund L.P. and Mercuria consortium has completed the acquisition of CQ Energy Canada Partnership for $722 million. The transaction closed on September 29, 2017.
CQ Energy Canada Partnership was a joint venture (JV) of Centrica plc (LSE: CAN) (60%) and Qatar Petroleum International (QPI) (40%). Centrica and QPI acquired a package of producing oil and natural gas assets in the Western Canadian Sedimentary Basin from Suncor Energy for $1 billion to form the JV.
Calgary based CQ Energy Canada owns a diverse base of producing, resource and infrastructure assets located throughout Alberta, British Columbia, Saskatchewan, Manitoba and Ontario. As of December 31, 2106, CQ Energy had 2P reserves of 345 million barrels of oil equivalent (mmboe) and was producing 56,070 barrels of oil equivalent per day (90% being natural gas).
Calgary based CQ Energy Canada owns a diverse base of producing, resource and infrastructure portfolio located throughout the Western Canadian Sedimentary and Williston basins in Alberta, Saskatchewan, Manitoba, Ontario and British Columbia. As of December 31, 2106, CQ Energy had 2P reserves of 345 million barrels of oil equivalent (mmboe) and was producing 56,070 barrels of oil equivalent per day (90% being natural gas).
CQ Energy Canada’s portfolio also includes midstream infrastructure assets in active areas including Ferrier, Hanlan, Carrot Creek and Wildcat Hills CQ Energy Canada has ownership in 11 major facilities including three sweet and eight sour plants with net processing capacity of 630 MMscf per day.
Executive Director of the MIE Holdings Corporation, Mr. Zhang Ruilin commented, “The acquisition will significantly improve MIE’s production capacity, financial performance and capital raising capability, as well as unlocking shareholder value. The acquisition fits MIE’s strategy of securing global investment opportunity for asset optimization following the recent low oil and gas price, particularly producing asset opportunities in resource rich countries like Canada. The Target has low decline, long life asset base products and infrastructure that has great growth potentials. One of the highlight of the Target is that it keeps a positive EBITDA/Netback under the current market and is capable of funding its operation with free cash flow and asset based financing. The Group also uses this opportunity to develop a balanced oil and gas portfolio and shift into an international player.”
Can-China Global Resources Fund L.P. is an independent market-oriented private equity fund focused on the natural resources sectors in Canada and the U.S. Can-China Global Resources Fund completed raising its first phase equity capital in 2013 with available commitments of US $10 billion in subsequent phases from its international investors. Can-China Global Resources Fund was the result of bilateral discussions between the governments of Canada and China to encourage the establishment of an independent fund to assist with the responsible investment of public and private capital from China into the Canadian natural resources sector.
Geneva, Switzerland based Mercuria is a leading energy and commodities group. China National Chemical Corporation (ChemChina), one of China’s largest chemical companies, completed a strategic investment in Mercuria in 2016.
photo credit: MIE Holdings