Canadian Natural in US$6.5bn deal for Chevron’s Alberta assets
Canadian oil sands producer Canadian Natural Resources Limited (CNRL) said October 7 it had entered into definitive agreements to acquire Chevron’s 20% interest in the Athabasca Oil Sands Project (AOSP) and its 70% operating interest in certain Duvernay assets for a cash consideration of US$6.5bn (C$8.8bn).
The acquired AOSP assets include Chevron Canada Limited’s 20% interests in the Muskeg River and Jackpine mines, the Scotford upgrader near Edmonton and the Quest carbon capture and storage (CCS) facility and raise CNRL’s total AOSP interest to 90%, with Shell holding the remaining 10%. CNRL will also acquire various working interests in a number of non-producing oil sands leases covering 267,000 gross acres.
The Duvernay assets, meanwhile, are expected to produce 179mn ft3/day of natural gas and 30,000 barrels/day of crude oil and liquids in 2025.
“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,” CNRL president Scott Stauth said. “Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long term shareholder value.”
The effective date for the acquisitions is September 1, 2024, and the transaction is expected to close in Q4 2024.