Shell has struck a deal to sell its Duvernay shale light oil assets in Alberta, Canada, to Crescent Point Energy for $707 million.
Toronto-listed Crescent Point will stump up $550m in cash and 50m shares, valued at $157m.
The transaction has an effective date of January 1 2021 and is expected to close in April 2021.
Shell’s package includes 450,000 net acres in the Fox Creek and Rocky Mountain House areas, along with related infrastructure, currently producing around 30,000 barrels of oil equivalent per day from more than 270 wells.
Crescent Point will retain the field employees and several technical and commercial roles that support the assets.
Shell upstream director Wael Sawan said: “Divesting these assets underpins Shell’s effort to focus the Upstream portfolio to deliver cash.
“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 less complex portfolio.”
Shell has been operating in Canada for more than 100 years.
It also holds a 40% interest in LNG Canada, shale gas positions in British Columbia and gas and liquids positions in Alberta, the Scotford Complex in Alberta.
Investments in cleaner energy including the first waste-to-low-carbon-fuels plant in Quebec and a growing retail business with around 1,400 Shell-branded sites across Canada.
