Canadian Natural Resources Ltd. (CNRL) will increase its crude oil production capacity by 128,300 b/d before royalties with the purchase of Devon Canada Corp. for $3.775 billion (Can.) cash.
Devon Energy Corp. announced early this year its plan to shed Canadian operations and natural gas production to focus on US oil (OGJ Online, Feb. 20, 2019).
The companies have agreed to CNRL’s acquisition of thermal in situ properties that the acquiring company estimates are able to produce 108,200 b/d of crude oil from 701 million bbl of proved reserves, all operated, and conventional properties able to produce 20,100 b/d from 29 million bbl of reserves, 95% operated. The deal is subject to regulatory approvals.
It includes 1.5 million acres of land, of which a total of 1 million acres is undeveloped.
At closure, CNRL will have thermal in situ production capacity of about 320,000 b/d.
It projects yearend production of 250,000 b/d from thermal in situ properties, 450,000 b/d from oil sands mining and upgrading, 150,000 b/d of conventional light crude and NGL, 120,000 b/d of heavy crude oil, and 220,000 boe/d of natural gas.
Devon Canada has 735 employees.
