Canadian Natural Resources Ltd. (CNRL) has announced a major deal with Chevron Corp. that will see the company acquire a significant portion of Chevron’s assets in Alberta.
The deal, valued at $1.3 billion, will see CNRL take over Chevron’s 60% stake in the Athabasca Oil Sands Project, as well as its 100% interest in the Peace River Complex in northern Alberta.
This acquisition will make CNRL the largest producer of heavy oil in Canada, with an estimated production of 1.2 million barrels per day.
In a statement, CNRL President Tim McKay expressed excitement about the deal, stating that it aligns with the company’s strategy of focusing on long-life, low-decline assets.
The Athabasca Oil Sands Project, located near Fort McMurray, is one of the largest oil sands operations in the world, with a production capacity of 255,000 barrels per day. The Peace River Complex, located near Grande Prairie, has a production capacity of 12,000 barrels per day.
Chevron’s decision to sell its assets in Alberta is part of its global strategy to focus on higher-return, lower-risk projects. The company will continue to operate its downstream assets in Canada, including its Burnaby refinery and retail network.
This deal is subject to regulatory approval and is expected to close in the second half of 2021.
The acquisition of Chevron’s assets will further solidify CNRL’s position as a major player in the Canadian energy sector. It is also a positive sign for the industry, which has faced challenges in recent years due to low oil prices and the COVID-19 pandemic.
This deal is a testament to the resilience and strength of the Canadian energy industry, and it is expected to have a positive impact on the economy, providing jobs and revenue for the province of Alberta.
CNRL’s acquisition of Chevron’s assets is a significant development in the Canadian energy landscape, and it will be interesting to see how this deal will shape the future of the industry.
