CPP In­vest­ment Board buy­ing Shell’s stake in gas field

The Guardian (Charlottetown) - - BUSINESS -

TORONTO — The Canada Pen­sion Plan In­vest­ment Board will pay nearly $1.4 bil­lion to be­come the largest part­ner in the Cor­rib off­shore nat­u­ral gas field, 83 kilo­me­tres off the coast of Ireland.

The Toronto-based fund man­ager will ini­tially buy a 45 per cent in­ter­est in the project from a unit of the Shell en­ergy busi­ness for 830 mil­lion Bri­tish pounds.

Af­ter that deal closes, CPPIB plans to trans­fer a 1.5 per cent in­ter­est in the project to Calgary-based Ver­mil­ion En­ergy Inc. (TSX:VET), for 19.4 mil­lion pounds (C$32.2 mil­lion). Fol­low­ing the trans­ac­tions, Ver­mil­ion will have a 20 per cent in­ter­est in Cor­rib and be its op­er­a­tor. Nor­way’s Sta­toil ASA would con­tinue to have a 36.5 per cent in­ter­est in Cor­rib and CPPIB will have the re­main­ing 43.5 per cent. 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.

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