Chevron Canada, an indirect subsidiary of US energy major Chevron, has signed a definitive agreement to sell its assets in Canada to Canadian Natural Resources for $6.5bn (C$8.86bn).  

The transaction includes a 20% non-operated interest in the Athabasca Oil Sands Project and a 70% operated stake in the Duvernay shale and related assets. 

All assets being sold are located in Alberta, Canada. 

In 2023, these assets contributed 84,000 barrels of oil equivalent per day of production, net of royalties, to Chevron.  

With this acquisition, Canadian Natural Resources will increase its total current working interest in the Athabasca Oil Sands Project to 90%. 

The sale aligns with Chevron’s goal to divest $10bn–15bn in assets by 2028 as part of its plan to optimise its global energy portfolio.  

The all-cash transaction, with an effective date of 1 September 2024, is expected to close in the fourth quarter of 2024, pending regulatory approvals and customary closing conditions. 

Canadian Natural president Scott Stauth said: “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.  

“The light crude oil and liquids-rich Duvernay assets fit well with our current operations in the area and will drive significant value from our area knowledge and significant experience in this type of resource play.  

“Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value.” 

In a separate development, Chevron recently cleared a regulatory hurdle in its proposed $53bn all-stock merger with Hess, having received approval from the Federal Trade Commission following an antitrust review.  

This marks a key step towards completing the merger, which was first announced in October of the previous year. 

The merger's finalisation is subject to other conditions including the resolution of arbitration proceedings concerning pre-emptive rights in the Stabroek Block joint operating agreement in Guyana.