Canadian Natural Resources to acquire certain Alberta assets from Chevron for $6.5 billion

Canadian Natural Resources Ltd. has agreed to acquire certain interests in Alberta assets from Chevron Corp. in a US$6.5-billion cash deal.

Chevron Canada Ltd., an indirect subsidiary of Chevron, along with a related entity, have entered into a definitive agreement to sell their 20% non-operated interest in the Athabasca Oil Sands Project, 70% operated interest in the Duvernay shale, and related interests, Chevron said in an SEC filing Oct. 7.

The assets contributed 84,000 boe/d of production, net of royalties, to Chevron in 2023.

The Athabasca Oil Sands Project includes 20% of the Muskeg River and Jackpine mines, the Scotford upgrader, and the Quest carbon capture and storage plant, bringing Canadian Natural’s total current working interest in the project to 90%, the company said in a separate release.

The agreement also includes the acquisition of additional various working interests in other non-producing oil sands leases with aggregate acreage of about 267,000 gross (100,000 net) acres.

These include:

• 20% interest in Pierre River, increasing Canadian Natural’s total working interest to 90%.
• 60% interest in Ells River, increasing Canadian Natural’s total working interest to 90% .
• 33% interest in Saleski, increasing Canadian Natural’s total working interest to 83%.
• 6% working interest in Namur, increasing Canadian Natural’s total working interest to 65%.

In addition, Canadian Natural has also agreed to acquire, subject to regulatory approvals, Chevron’s 70% operated working interest of light crude oil and liquids rich assets in the Duvernay play in Alberta.

Production from these assets is targeted to average in 2025 about 60,000 boe/d, consisting of 179 MMcfd of natural gas and 30,000 b/d of liquids. Canadian Natural said it believes there are “significant liquids rich drill to fill opportunities” in the resource with more than “340 net light crude oil and liquids rich locations already identified with extensive infrastructure and available processing capacity, which depending on capital allocation, has a defined plan with potential to grow to 70,000 boe/d by 2027.”

The deal is expected to close in this year’s fourth quarter, subject to regulatory approvals and other customary closing conditions.