Chevron said the divestitures are part of its plans to sell $10 billion to $15 billion worth of assets by 2028 following the company’s acquisition of Hess Corp. for $53 billion. (Source: Shutterstock.com)
Chevron’s indirect subsidiary Chevron Canada Ltd. said Oct. 7 that it and a related entity had entered into an agreement to sell interests in the Athabasca Oil Sands project and the Duvernay Shale to Canadian Natural Resources Ltd.
In exchange for Chevron Canada’s 20% interest in Athabasca and 70% interest in the Duvernay, the company will receive $6.5 billion cash. The assets subject to the agreement contributed 84,000 boe/d, net of royalties, to Chevron in 2023.
Chevron has previously said it expected its Duvernay assets to fetch about $500 million, suggesting that the Athabasca assets made up the lion’s share of the sale price.
The $6.5 billion all-cash transaction is in line with previously announced plans by the supermajor to divest between $10 billion and $15 billion in assets by 2028. Chevron is optimizing its global energy portfolio following the company’s pending acquisition of Hess Corp. for a $53 billion.
The Hess deal remains on pause as Exxon Mobil and Chevron work through arbitration related to Hess’ offshore Guyana assets.
The oil sands and Duvernay transactions have an effective date of Sept. 1, 2024, and is expected to close in fourth-quarter 2024, subject to regulatory approvals.
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