CANADA — Chevron Canada Limited, a subsidiary of Chevron Corporation, has announced a major divestment of its Canadian assets.
The company has entered into a definitive agreement to sell its interests in the Athabasca Oil Sands Project and Duvernay shale to Canadian Natural Resources Limited for US$6.5 billion.
The all-cash transaction includes Chevron‘s 20 per cent non-operated interest in the Athabasca Oil Sands Project and its 70 per cent operated interest in the Duvernay shale, along with related assets in Alberta, Canada.
These assets contributed 84,000 barrels of oil equivalent per day (boe/d) of production, net of royalties, to Chevron in 2023.
The deal has an effective date of September 1, 2024, and is expected to close during the fourth quarter of 2024, pending regulatory approvals and other customary closing conditions.
This sale aligns with Chevron’s previously announced strategy to divest $10-15 billion in assets by 2028, aimed at optimising its global energy portfolio.
For Canadian Natural Resources, this acquisition represents a significant expansion of its operations in Alberta.
The company’s total working interest in the Athabasca Oil Sands Project will increase to 90 per cent following the completion of this transaction.
This deal marks a notable shift in the Canadian oil and gas landscape, with Chevron reducing its footprint in the region while Canadian Natural Resources strengthens its position.
The transaction underscores the ongoing trend of major international oil companies reassessing their portfolios and focusing on core assets.
As the energy sector continues to evolve, this sale highlights the strategic moves being made by industry players to adapt to changing market conditions and optimise their asset holdings for future growth and sustainability.