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Chevron exploring sale of Canadian oil sands stake -sources

Published 2017-04-13, 09:57 a/m
© Reuters.  Chevron exploring sale of Canadian oil sands stake -sources
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TORONTO/NEW YORK, April 13 (Reuters) - Chevron Corp (NYSE:CVX) CVX.N , the second-largest U.S.-based oil producer, is exploring the sale of its 20 percent stake in Canada's Athabasca Oil Sands project, which could fetch about $2.5 billion, according to people familiar with the situation.

The company has discussed with investment banks the prospect of selling the stake in the western Canadian oil sands project, one of the people said.

The possible sale comes after Royal Dutch Shell RDSa.L last month agreed to sell most of its Canadian oil sands assets to Canadian Natural Resources Ltd CNQ.TO for $8.5 billion. does not find the oil sands business appealing in the current environment, as low oil prices make it more challenging for global producers to generate strong profits, the people said, declining to be named as the matter is confidential.

The California-based company is close to making a decision, taking into account factors such as price, the people added.

A Chevron spokesman declined to comment.

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