• Natural Gas News

    Shell Sells Interest in Canadian Oil Sands Producer

Summary

The sale brings Shell to its original asset sales target, but it is going to exceed that based on progress to date.

by: William Powell

Posted in:

NGW News Alert, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, News By Country, Canada, Complimentary

Shell Sells Interest in Canadian Oil Sands Producer

Anglo-Dutch major Shell said May 8 it had agreed to sell its approximate 8% interest in Canadian Natural Resources Limited, a major Canadian natural gas and oil sands producer, for $3.3bn to Goldman Sachs & Co, RBC Capital Markets, Scotiabank and TD Securities.

The deal is expected to close May 9, and takes the company to its target of $30bn of disposals, following its purchase of UK BG. It said as it announced its Q1 results at the end of April that it had realised $26bn in disposals so far, with another $6bn or so of sales nearly concluded.

Shell acquired its 97.6mn common shares in Canadian Natural in May 2017 as part of a $12.5bn transaction that saw Canadian Natural acquire Shell's 60% interest in the Athabasca Oil Sands Project north of Fort McMurray, Alberta; the Scotford Upgrader and the Quest Carbon Capture and Storage project, both near Edmonton, its 100% working interest in its Peace River thermal in situ operations, and its 100% working interest in the Cliffdale heavy oil field as well as other oil sands leases.