The Canada Pension Plan Investment Board will acquire a 45 per cent interest in the Corrib natural gas field off the coast of Ireland.

The pension fund’s subsidiary CPP Investment Board Europe is acquiring Shell E&P Ireland Ltd., which holds the Shell Exploration Co.’s 45 per cent interest in Corrib, for $1.6 billion ($1.08 billion euros).

The transaction includes an initial consideration of $1.2 billion ($830 million euros) and additional payments of up to $369 million ($250 million euros) between 2018-2025, subject to gas price and production.

Read: CPPIB commits equity to U.S. oil and gas acquisition company

Global energy producer Vermilion Energy Inc. will hold a 20 per cent operated interest in the natural gas field, while CPPIB will hold a 43.5 per cent non-operated interest and Norwegian oil and gas company Statoil ASA will continue to hold a 36.5 per cent non-operated interest.

The natural gas field has a gross plant capacity of approximately 350 million cubic feet of natural gas per day, provides approximately 60 per cent of Ireland’s natural gas consumption and constitutes approximately 95 per cent of Ireland’s gas production.

“Ireland is an attractive destination for a long-term investor like CPPIB, and through this investment in the Corrib gas field, we are able to further our strategy of investing in high-quality natural resources assets alongside highly regarded and experienced operating partners such as Vermilion,” said Avik Dey, managing director and head of natural resources at CPPIB, in a news release.

Read: CPPIB’s Crestone Peak Resources announces expected close of Encana subsidiary sale

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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