Chevron Canada has entered into a definitive agreement to sell its interests in the Athabasca Oil Sands (AOS) Project, the Duvernay shale, and related assets all located in Alberta, CA, to Canadian Natural Resources Limited (CNRL).
For US $6.5 billion, CNRL will get Chevron’s 20% non-operated interest in the AOS project, and its 70% operated interest in the Duvernay shale.
With the sale of its stake in the AOS project, Chevron is effectively exiting the oil-sands business. Note that this transaction is part of Chevron’s previously announced plans to divest $10–15 billion in assets by 2028 to optimize its global energy portfolio. Meanwhile, last week, the major oil company cleared a critical antitrust hurdle with the U.S. Federal Trade Commission for its planned purchase of Hess which will include the much- sought after offshore Guyana asset.
The all-cash Canadian deal that was announced Monday is expected to close during Q4 2024, subject to regulatory approvals and other conditions. These assets contributed 84 Mboe/d of production, net of royalties, to Chevron in 2023.
