https://www.miningweekly.com
Environment|Flow|PROJECT|Resources|Shell|Flow
Environment|Flow|PROJECT|Resources|Shell|Flow
environment|flow-company|project|resources|shell|flow-industry-term

Chevron to sell assets worth $6.5bn to Canadian Natural Resources

7th October 2024

By: Reuters

  

Font size: - +

Chevron is selling its assets in Athabasca Oil Sands and Duvernay Shale to Canadian Natural Resources for $6.5-billion, the oil giant said on Monday as it puts in motion its divestiture plan.

The all-cash transaction, which is expected to close in the fourth quarter, is a part of its strategy to divest $10-billion to $15-billion of assets by 2028.

The assets, located in Alberta, Canada, contributed 84 000 barrels of oil equivalent per day (boepd) of production to Chevron in 2023.

The Duvernay is one of Canada's top shale plays and has seen eight deals worth $2.9 billion in the last three years, Wood Mackenzie said in January.

After the deal, Canadian Natural will own 90% of the Athabasca Oil Sands project, while Shell owns the rest.

The company said along with the Duvernay assets, it would add 122 500 boepd of its target production in 2025.

It also raised its quarterly dividend by 7% to 56.25 Canadian cents per share, payable in January 2025, with its finance chief Mark Stainthorpe saying the deal will add to cash flow and earnings immediately.

Canadian Natural had a long-term debt of C$9.33-billion as of June 30.

Chevron, meanwhile, is looking to spend more than 75% of its production budget on U.S. shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan.

It had recently cleared an FTC review on its $53 billion deal for Hess, but will need to clear a challenge by Exxon XOM.N and CNOOC, Hess's partners in a Guyana joint venture. A three-judge arbitration panel is set to consider the case next May.

Shares of Chevron were up 1% before the bell in a higher oil-price environment.

Edited by Reuters

Comments

Latest News

Speewah fluorite gains major project status
Speewah fluorite gains major project status
Updated 41 minutes ago By: Mariaan Webb
The Zinkgruvan mine in Sweden
Lundin sells two European mines to Boliden
Updated 2 hours 5 minutes ago By: Mariaan Webb

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Victaulic
Victaulic

Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 06 December 2024
Magazine round up | 06 December 2024
6th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:3.587 3.62s - 144pq - 2rq
Subscribe Now