Chevron sells stake in Canadian oil sands and shale assets
Chevron Canada Limited, a subsidiary of U.S.-based global energy major Chevron Corporation, has entered into a definitive agreement to sell its 20% non-operated interest in the Athabasca Oil Sands Project and 70% operated interest in the Duvernay shale in Alberta, Canada, to Canadian Natural Resources Limited. The all-cash deal, valued at USD6.5 billion, is part of Chevron’s broader strategy to optimise its global energy portfolio.
The sale, effective from 1 September 2024, is expected to close by the fourth quarter of 2024, pending regulatory approvals and customary closing conditions. These assets contributed an average of 84,000 barrels of oil equivalent per day (boe/d) net of royalties to Chevron’s production in 2023.
This transaction advances Chevron’s previously announced goal of divesting USD10-15 billion in assets by 2028 to focus on core assets and streamline operations in line with the company’s strategic objectives.
“This sale reflects our ongoing commitment to focusing on core business areas while advancing Chevron’s portfolio transformation,” said Paula Beasley, Chevron’s spokesperson/
Canadian Natural Resources Limited, a major player in Canada’s oil industry, will assume responsibility for the assets, bolstering its existing position in both the oil sands and shale operations.
Chevron continues to pursue its energy transition goals, focusing on lowering carbon intensity in its traditional oil and gas business while increasing investments in renewable fuels, carbon capture, hydrogen, and emerging technologies.