Chevron is taking strategic steps to streamline its global energy portfolio by offloading certain Canadian assets. In a significant move, Chevron Canada, a subsidiary of the oil giant, has agreed to sell a 20% non-operated interest in the Athabasca Oil Sands Project and a 70% operated interest in the Duvernay shale to Canadian Natural Resources for an impressive $6.5 billion in cash.
This transaction illustrates Chevron's commitment to its divestment strategy aimed at reducing $10 billion to $15 billion in assets by the year 2028. The effective date for this transaction concerning the Alberta-based assets has been set for September 1, pending necessary regulatory approvals, with completion expected in the fourth quarter of the year.
The assets involved in this deal have substantially contributed to Chevron's production capabilities, totaling around 84,000 barrels of oil equivalent per day in 2023. In the stock market, Chevron's shares saw a positive uptick of 1.3% during premarket trading, while Canadian Natural Resources' U.S.-listed stock rose by 1.9%.
This acquisition also includes interests in additional non-producing oil sands leases, as mentioned in a separate statement from Canadian Natural. To finance this significant purchase, Canadian Natural plans to utilize a CA$4 billion ($2.9 billion) loan alongside its existing cash resources and committed bank facilities.
President Scott Stauth expressed optimism regarding the deal, stating, "These assets are a great fit for Canadian Natural and will allow us to further implement our strong operating culture and drive significant value for shareholders. We expect further efficiencies and improved performance going forward." As Chevron continues to focus on its divestment plan, this transaction marks a decisive step in reshaping its operations while allowing Canadian Natural Resources to expand its footprint in the lucrative oil sands sector..