Chevron sells Alberta assets for $6.5 billion

Canada

CALGARY, October 7, 2024 – Chevron has sold its stakes in Alberta’s Athabasca Oil Sands and Duvernay shale projects to Canadian Natural Resources for USD 6.5 billion, the US company announced on Monday.

The company held a 20% non-operated interest in the Athabasca Oil Sands and a 70% operated stake in the Duvernay shale.

With the deal, Canadian Natural has consolidated its leadership in the Athabasca project, raising its stake to 90%. Shell holds the remaining 10%.

The two assets contributed 84,000 boepd of production, net of royalties, to Chevron in 2023.

The deal will make a key contribution to Chevron’s push to divest USD 10 billion–15 billion in assets by 2028.

Canadian Natural president Scott Stauth said the Athabasca project’s location close to the company’s Horizon oil sands mine will allow the company to boost efficiency in its regional production, Canada state broadcaster CBC reported on Monday.

Chevron’s exit from the oil sands comes at a time of uncertainty over the oil hotspot’s future as investors question the long-term viability of the region’s relatively high-emissions production.

Photo courtesy of the Athabasca Oil Corporation.