Chevron Canada to sell assets to Canadian Natural Resources for $6.5 bn
10 Oct 2024
US multinational oil and energy group Chevron Corporation on Tuesday announced plans to sell its Canadian assets in the Athabasca oil sands and Duvernay shale formation to Canadian Natural Resources for $6.5 billion, in an all-cash deal.
Chevron Canada Limited, an indirect subsidiary of Chevron Corporation and a related entity have entered into a definitive agreement to sell their stakes in Phoenix Duvernay Gas, Canadian Natural Resources Ltd and Chevron Canada Ltd to Canadian Natural Resources Limited.
Chevron’s Canadian business includes 20 per cent non-operating interest in the Athabasca Oil Sands Project, 70 per cent operating interest in the Duvernay shale and related interests in Alberta, Canada.
The assets added 84,000 boe per day, net of royalties, to Chevron’s production in 2023, according to the company.
The sale is part of Chevron’s previously announced plans to divest $10–15 billion in assets by 2028 to optimise its global energy portfolio.
The sale will also leave Chevron with increased financial power as it bids for the $53 billion assets of Hess Corporation.
Exon is awaiting the decision of a three-judge arbitration panel which will consider Exxon’s right to first refusal in the Hess case, even as the FTC has cleared the deal.
After the deal, Canadian Natural Resources will own 90 per cent of the Athabasca oil sands project, with Shell owning the remaining.