Canadian Natural Resources Ltd. (NYSE: CNQ) said on Dec. 12 it will sell its stake in the Cold Lake pipeline to Inter Pipeline Ltd. for C$527.5 million in cash and stock, but will maintain access to the route to move its crude.

Canadian Natural is expecting to move through the pipeline crude from its 40,000-barrel-per-day Kirby North thermal project, which it said last month would be re-initiated.

Canadian Natural had been the first oil sands producer to re-sanction a deferred major project since the global oil price slump began in 2014, a sign that relief is coming to the battered industry.

"While it is unusual for CNQ to sell midstream assets, its interest in the Cold Lake Pipeline was noncore, while egress for Kirby North has been preserved," Royal Bank of Canada analyst Greg Pardy said in a note.

Canadian Natural said it will receive C$350 million in cash and 6.4 million common shares of Inter Pipeline at an ascribed value of $177.5 million for the sale of the pipeline.

"Canadian Natural expects to record an after-tax gain on disposition of approximately $200 million," the company said.

The company's shares were up 1.8% at C$44.78 in early afternoon trading on the Toronto Stock Exchange. (US$1 = C$1.3125)