Chevron, a leading integrated energy company, has disclosed its plans to divest its non-operated interests in Alberta to Canadian Natural Resources for a total consideration of $6.5 billion. This strategic move involves the sale of a 20 percent non-operated interest in the Athabasca Oil Sands Project, a 70 percent operated interest in the Duvernay shale, and related interests.
As part of the acquisition, Canadian Natural Resources will increase its total current working interest in the Athabasca Oil Sands Project to 90 percent. This transaction will contribute approximately 62,500 barrels per day of long-life synthetic crude oil production to Canadian Natural’s portfolio. Additionally, the agreement includes the acquisition of various working interests in non-producing oil sands leases spanning approximately 404 to 1,000 square kilometers.
Canadian Natural Resources President Scott Stauth emphasized the strategic fit of the acquired assets with the company’s operations and the potential for driving significant value for shareholders. To fund this acquisition, Canadian Natural has secured a $4 billion term loan facility in addition to existing cash and committed bank facilities.
The transaction is slated to be finalized in the fourth quarter of 2024. Chevron is recognized as a major producer of crude oil, natural gas, transportation fuels, lubricants, and petrochemicals, with a focus on developing technologies for renewable energy sources. On the other hand, Canadian Natural Resources Ltd. is a prominent oil and natural gas production company operating in Western Canada, the U.K. North Sea region, and Offshore Africa.
Notably, Canadian Natural Resources stock (TSX:CNQ) last traded at C$48.22 per share, reflecting an 11.95 percent increase since the start of the year. Meanwhile, Chevron stock (NYSE:CVX) closed at C$205.02 per share, marking a 1.84 percent rise year-to-date. Investors and shareholders can engage in discussions about these stocks on the respective Stockhouse Bullboards for Chevron and Canadian Natural Resources.
