Chevron agrees US$6.5bn sale of Athabasca Oil Sands Project and Duvernay shale assets

CHEVRON has struck a deal with Canadian Natural Resources to sell off several oil businesses in Alberta, Canada, for an all-cash transaction of US$6.5bn.

Canadian Natural will now own the 20% non-operating stake in the Athabasca Oil Sands Project (AOSP), and 70% in light crude oil and liquids-rich assets in the Duvernay shale formation.

The sale will add approximately 122,500 boe/d to the company’s 2025 production.

Scott Sauth, Canadian Natural’s president, said: “We have made significant progress in driving efficiencies at AOSP over the last seven years since the original acquisition in May 2017.”

He added: “Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value.”

Added value

Through the acquisition, Canadian Natural will also gain a majority interest in assets in Pierre River to 90%, Ells River to 90%, Saleski to 83%, and Namur to 65%.

Mark Stainthorpe, Canadian Natural’s CFO, said: “This is a great opportunity to add to our world-class oil sands mining and upgrading asset at AOSP, as well as light crude oil and liquids-rich assets in Alberta.”

The company already produces 20,000 bbl/d at ASOP, and the acquisition of a further 20% will add around 62,500 bbl/d of long life no decline synthetic crude to its portfolio.

Chevron divestment

Chevron says the deal follows its plan to divest US$10–15bn in assets by 2028 to “optimise its energy portfolio”.

In May, Chevron sold off its almost 20% stake in the Clair field in the North Sea.

The company is also reported to be in talks to sell off its natural gas assets in east Texas to Tokyo Gas, in a deal valued at around US$1bn.