Chevron is selling its assets in the Athabasca oil sands and Duvernay shale formation to Canadian Natural Resources for $6.5 billion, the oil giant said on Monday as it puts in motion its divestiture plan.
The all-cash transaction, which is expected to close in the fourth quarter, is a part of its strategy to divest $10 billion to $15 billion of assets by 2028.
The assets, located in Alberta, Canada, contributed 84,000 barrels of oil equivalent per day (boepd) of production to Chevron in 2023.
The deal relates to Chevron’s 20% interest in the Athabasca Oil Sands Project and a 70% holding in the Duvernay shale, both in the province of Alberta, according to a statement from the company on Monday.
After the deal, Canadian Natural will own 90% of the Athabasca Oil Sands project, while Shell owns the rest.
Canadian Natural has a long-term debt of 9.33 billion Canadian dollars ($6.9 billion).
The Duvernay is one of Canada's top shale plays and has seen eight deals worth $2.9 billion in the last three years, Wood Mackenzie said in January.
Chevron, meanwhile, is looking to spend more than 75% of its production budget on US shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan.
Shares of Chevron were up 1.1% before the bell on Monday driven by a higher oil-price environment and this deal.
