Shell Sells Canadian Duvernay Shale Oil Assets
Feb 18, 2021 7:00:am
Summary
by: Dale Lunan
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Shell Sells Canadian Duvernay Shale Oil Assets
Anglo-Dutch major Shell, through its Canadian subsidiary Shell Canada Energy, said February 17 it had reached an agreement to sell its Duvernay shale position in Alberta to Crescent Point Energy for a total consideration of US$707(C$900)mn.
The sale consideration is comprised of US$550mn in cash and 50mn Crescent Point shares, valued at US$157mn. Subject to regulatory approvals, the transaction is expected to close in April 2021 and carry an effective date of January 1, 2021.
“Divesting these assets underpins Shell’s effort to focus the upstream portfolio to deliver cash,” said Wael Sawan, upstream director at Shell. “While we believe these assets hold value, the divestment allows us to focus on our core upstream positions like the Permian Basin, with integrated value chains, thereby building a resilient, lower-risk and l