Centrica sells £240m stake in Canadian oil and gas firm

A Canadian oil & gas exploration and production (E&P) firm is to be sold for CAD$722 million (£413m). The CQ Energy Canada Partnership, in which Centrica owns a 60% interest, […]

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By Jonny Bairstow

A Canadian oil & gas exploration and production (E&P) firm is to be sold for CAD$722 million (£413m).

The CQ Energy Canada Partnership, in which Centrica owns a 60% interest, is to be sold to a consortium made up of MIE Holdings Corporation, the Can-China Global Resource Fund and Mercuria.

Qatar Petroleum International owns the other 40% of the business.

Centrica’s net share of sale proceeds is expected to be worth around £240 million.

The divestment means Centrica’s E&P activity will now be focused solely on European assets, in line with its new strategy.

The deal, which is expected to be completed in the second half of 2017, is still subject to customary regulatory approvals and needs final confirmation from shareholders.

Centrica has said it will cut around 1,500 jobs this year, as part of its plan to reduce annual costs by £750 million.