Chevron to offer possessions worth $6.5 billion to Canadian Natural Resources

(Reuters) -Chevron is marketing its possessions in Athabasca Oil Sands and Duvernay Shale to Canadian Natural Resources for $6.5 billion, the oil titan claimed on Monday as it places in activity its divestiture strategy.

The all-cash deal, which is anticipated to enclose the 4th quarter, belongs of its technique to unload $10 billion to $15 billion of possessions by 2028.

The possessions, situated in Alberta, Canada, added 84,000 barrels of oil equal daily (boepd) of manufacturing to Chevron in 2023.

The Duvernay is among Canada’s leading shale plays and has actually seen 8 bargains worth $2.9 billion in the last 3 years, Wood Mackenzie claimed in January.

After the bargain, Canadian Natural will certainly possess 90% of the Athabasca Oil Sands job, while Shell possesses the remainder.

The business claimed together with the Duvernay possessions, it would certainly include 122,500 boepd of its target manufacturing in 2025.

It additionally elevated its quarterly returns by 7% to 56.25 Canadian cents per share, payable in January 2025, with its money principal Mark Stainthorpe stating the bargain will certainly contribute to capital and profits quickly.

Canadian Natural had a long-lasting financial obligation of C$ 9.33 billion since June 30.

Chevron, on the other hand, is aiming to invest greater than 75% of its manufacturing budget plan on united state shale containers, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan.

It had actually lately gotten rid of an FTC testimonial on its $53 billion bargain for Hess, however will certainly require to remove a difficulty by Exxon and CNOOC, Hess’s companions in a Guyana joint endeavor. A three-judge mediation panel is readied to think about the situation following May.

Shares of Chevron were up 1% prior to the bell in a greater oil-price setting.

(Reporting by Seher Dareen in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur)