Canadian Natural Resources Limited (CNRL) has announced its plans to acquire Chevron’s Alberta assets for a whopping US $6.5 billion. This deal, which is expected to close in the fourth quarter of 2021, will make CNRL the largest producer of natural gas and heavy oil in Canada.
The assets being acquired include a 26.25% interest in the Athabasca Oil Sands Project, a 60% stake in the Peace River Oil Sands, and various other properties in the Deep Basin and Western Canada. This acquisition will add approximately 250,000 barrels of oil equivalent per day to CNRL’s production, bringing their total production to over 1.2 million barrels per day.
Steve Laut, Executive Vice-Chairman of CNRL, stated that this acquisition aligns with the company’s strategy of focusing on long-life, low-decline assets. He also emphasized that this deal will provide significant value to CNRL’s shareholders, as well as create jobs and economic benefits for Alberta and Canada.
Chevron’s decision to sell its Alberta assets is part of their global divestment plan, which aims to streamline their portfolio and focus on high-return, low-carbon assets. This sale is also in line with the company’s commitment to reducing its carbon footprint and investing in renewable energy sources.
The acquisition of Chevron’s assets will solidify CNRL’s position as a major player in the Canadian energy industry. It will also provide them with a strong foothold in the oil sands sector, which is expected to see significant growth in the coming years.
This deal is subject to regulatory approvals and customary closing conditions. However, both CNRL and Chevron are confident that the transaction will be completed successfully.
In conclusion, CNRL’s acquisition of Chevron’s Alberta assets is a significant move that will have a major impact on the Canadian energy landscape. It is a strategic decision that will benefit all parties involved and contribute to the growth and development of the industry.
