Photo by: Bloomberg
VANCOUVER (miningweekly.com) – The Canada Pension Plan Investment Board (CPPIB) will pay nearly C$1.2-billion to become the largest partner in the Corrib offshore natural gas field, 83 km offshore Ireland.
The Toronto-based fund manager will initially buy a 45% interest in the project from a subsidiary of the Dutch exploration and production giant Shell for €830-million.
After that deal closes, CPPIB plans to transfer a 1.5% interest in the project to Calgary-based Vermilion Energy, for C$228.24-million. Vermilion currently holds an 18.5% working interest in the Corrib natural gas field.
"We welcome CPPIB as a strategic partner in this world-class gasfield, and we look forward to a productive long-term relationship. Our ownership in Corrib and investment in Ireland date back to 2009, and we are proud to be a part of the energy industry in this stable jurisdiction,” Vermillion president and CEO Anthony Marino stated on Wednesday.
Following the transactions, Vermilion will have a 20% interest in Corrib and be the operator. Norway’s Statoil ASA would continue to have a 36.5% interest in Corrib and CPPIB will own the remaining 43.5%.
The CPP Fund, managed by the CPPIB for the Canada Pension Plan, was worth about $316.7-billion as of March 31. Corrib will be managed by CPPIB’s natural resources group, which had investments worth $4.3-billion as of March 31.