Chevron Canada Limited, a subsidiary of Chevron Corporation, has just announced the sale of its interests in the Athabasca Oil Sands Project and Duvernay Shale to Canadian Natural Resources Limited for a whopping $6.5 billion in an all-cash transaction. The deal, which has an effective date of September 1, 2024, is expected to close during the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
The assets being sold contributed 84 thousand barrels of oil equivalent per day (boe/d) of production, net of royalties, to Chevron in 2023. This sale aligns with Chevron's plans to divest $10-15 billion in assets by 2028 to optimize its global energy portfolio.
This move comes as Chevron continues to position itself as one of the world's leading integrated energy companies. The company aims to grow its oil and gas business, lower the carbon intensity of its operations, and expand into lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen, and other emerging technologies.
This strategic divestment signifies Chevron's commitment to refining its portfolio and focusing on its core business areas. The sale of these assets will likely have a significant impact on Chevron's financials, and it will be interesting to see how the company reallocates the proceeds from this transaction. The market has reacted to these announcements by moving the company's shares 0.6% to a price of $151.59. For the full picture, make sure to review Chevron's 8-K report.
