13 July 2017
Toronto
Reporter: Theo Andrew

CPPIB pumps $830 million on Irish natural gas field


The Canada Pension Plan Investment Board (CPPIB) and Vermilion Energy have entered into a joint venture to acquire the majority of Corrib Natural Gas Field in Ireland for €830 million.

Vermilion, which already owns a 18.5 percent stake in Corrib, will be responsible for the operation of the gas field, while CPPIB will take over the Shell Exploration Company’s 45 percent stake in the project.

CPPIB will acquire 100 percent of Shell E&P Ireland (SEPIL), which holds Shell’s 45 percent interest in Corrib.

On closing, CPPIB will hand over SEPIL, plus a 1.5 percent stake in Corrib, to Vermilion for €19.4 million, taking Vermilion’s stake in Corrib to 20 percent. Statoil ASA will continue hold 36.5 percent of non-operated interest.

Closing is expected in the first half of 2018, subject to customary conditions and government’s consent.

In addition, two contingency payments, a €150 million payment linked to prices and €100 million payment linked to production levels, have been put in place.

Located 83 kilometres off the north coast of Ireland, the gas field has a capacity of approximately 350 million cubic feet of natural gas per day, providing 60 percent of Ireland’s gas consumption.

Avik Dey, head of natural resources at CPPIB, said: “Vermilion has a strong operational track record in both onshore and offshore projects and we look forward to working with them and are confident that this investment will benefit the CPP Fund by delivering strong risk-adjusted returns over the long-term horizon of the fund.”

Anthony Marino, president and CEO of Vermilion, said: “We welcome CPPIB as a strategic partner in this world-class gas field, and we look forward to a productive long-term relationship.”

He added: “Our extensive experience in Europe, North America and Australia over our 23-year history will serve us well in Corrib. We look forward to working with SEPIL employees and Corrib stakeholders to implement our best-in-class approach to safety, environmental protection and strategic community investment.”

Vermilion, an international energy producer, first invested in the Corrib gas field in 2009.

As of 31 March 2017, CPPIB’s natural resource portfolio consisted of nine direct investments valued at $4.3 billion. In October 2015, the pension fund purchased Denver Julesberg Basin in Colorado for $900 million.

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
EPIC warehouse acquisition in the pipeline
20 November 2017 | London | Reporter: Stephanie Palmer
Ediston Property Investment Company (EPIC) is set to acquire four retail warehouse parks in the UK from Stadium Group, for £144 million
HFF delivers $288.8 million loan for resi project
17 November 2017 | San Jose, California | Reporter: Theo Andrew
HFF has secured $288.8 million of construction financing for two luxury residential towers in San Jose, California
CBRE Capital Advisors chosen for £100 million fund
16 November 2017 | Belfast | Reporter: Theo Andrew
The Northern Ireland fund will provide debt finance for real estate, regeneration, low carbon and infrastructure projects. It has been appointed on a 15 year mandate
AXA IM - Real Assets hit final close on logistics club
15 November 2017 | London | Reporter: Theo Andrew
The fund, which seeks to invest in 1 million square metres of logistics developments across Europe, raised the equity commitments from four international institutional investors
LaSalle names European head in business restructure
14 November 2017 | Paris | Reporter: Theo Andrew
Karim Habra was previously head of France for LaSalle, and his appointment replaces the firm’s previous structure of naming country heads for Europe
L&G settles on UK retirement villages for £102 million
14 November 2017 | London | Reporter: Theo Andrew
The portfolio, not yet fully developed, will comprise of 694 units, located in Liphook in Hampshire; Faygate in West Sussex; Exeter in Devon; and Great Alne in Warwickshire
Patrizia acquires German-based Triuva
13 November 2017 | Berlin | Reporter: Theo Andrew
Triuva had AUM of approximately €9.8 billion, meaning the deal, for an undisclosed price, places Patrizia in the top 10 European investment managers