Proactive Investors - Canadian Natural Resources Limited (TSX:TSX:CNQ) is acquiring a 20% interest in the Athabasca Oil (TSX:ATH) Sands Project (AOSP) in Alberta, Canada from Chevron Corporation (NYSE:NYSE:CVX, ETR:CHV)'s indirect subsidiary Chevron Canada bringing its stake in the project to 90%.
Canadian Natural is also acquiring Chevron’s 70% operated working interest in Duvernay shale, also located in Alberta.
The company will pay Chevron about US$6.5 billion in cash for the acquisitions.
The assets will add targeted 2025 production of approximately 122,500 barrels of oil equivalent per day and approximately 1,448 million barrels of oil equivalent of total proved plus probable reserves to Canadian Natural Resources, the company said.
“Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value,” Canadian Natural president Scott Stauth stated.
Mark Stainthorpe, Canadian Natural CFO, added: “This is a great opportunity to add to our world class Oil Sands Mining and Upgrading asset at AOSP, as well as light crude oil and liquids rich assets in Alberta.”
The sale is part of Chevron’s previously announced plans to divest between $10 billion to $15 billion in assets by 2028.
The assets contributed 84 thousand barrels of oil equivalent of production net of royalties to Chevron in 2023.
The acquisitions have an effective date of September 1, 2024 and are expected to close in the fourth quarter.
Shares of Canadian Natural traded up 3.3% at $36.73 late morning on Monday following the announcement. Chevron traded 0.6% higher at $151.66.