Wedoany.com Report-Oct 08, Chevron is selling its assets in the Athabasca oil sands and Duvernay shale formation to Canadian Natural Resources for $6.5 billion, which is part of its strategy to raise the amount to $15 billion by 2028. Chevron's Canadian assets constitute 84000 barrels of oil production per day, as one of Canada’s top shale plays. Canadian Natural said along with the Duvernay assets, it would add 122,500 boepd of its target production in 2025.
While the deal has passed the surveillance from FTC, a three-judge arbitration panel is set to consider Exxon’s right to first refusal. Allen Good, analyst at Morningstar noted that The deal offloads a high-cost asset in the oil sands from Chevron and the Duvernay asset, this is also a trend the oil majors experienced in recent years, and will continue.
The sale gives Chevron more financial power in its fight with Exxon, the company also raised its quarterly dividend by 7% to 56.25 Canadian cents per share, which will add to cash flow and earnings immediately.
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