Qatar Petroleum, Centrica sign pact to explore investments

ENERGY provider Centrica, which owns British Gas, said on Monday that it has signed a memorandum of understanding (MoU) with Qatar Petroleum to explore further cooperation in oil and gas investments.

Centrica, which inked a major deal earlier this year to secure liquefied natural gas supplies from Qatar, said in a press release issued in Doha that the pair would seek to deepen and extend their relationship.

“The partnership will enable us to jointly develop significant energy investments that will further boost the long-term security of the UK’s gas supply,” said Centrica Chief Executive Sam Laidlaw in the statement.

“We will also explore joint opportunities to deploy capital and expertise in other markets to deliver growth and value for the group.” Investment targets would include new or existing projects in upstream oil and gas including liquefied natural gas, gas storage and combinedcycle gas turbine generation assets and downstream opportunities.

Back in February, Centrica signed a £2-billion deal with Qatargas for the supply of 2.4 million tonnes a year of gas over three years to Britain.

Monday’s agreement, which was inked at the World Petroleum Conference in Doha, comes two weeks after Centrica announced a North Sea agreement with Norway’s Statoil to help protect Britain’s gas security over a 10-year period starting in 2015.

The Statoil deal, which replaces a previous decade-long agreement, is worth £13 billion ($20.3 billion) at current gas prices. Centrica had also unveiled a cash deal to buy North Sea assets run by Statoil for £1 billion, boosting the British group’s oil and gas output by 25 percent.

Article by Links Group on Dec 6th 2011