Home » Energy » Royal Dutch Shell signs deals to sell oilsands assets

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai III: Cataclysm
Click on image to purchase

Royal Dutch Shell signs deals to sell oilsands assets

Royal Dutch Shell signs deals to sell oilsands assets

Anglo-Dutch energy giant shedding interests in Athabasca, Peace River and other leases

Royal Dutch Shell CEO Ben van Beurden said the deals revealed Thursday are are a 'significant step' in re-shaping Shell's portfolio in line with its long-term strategy.

Royal Dutch Shell CEO Ben van Beurden said the deals revealed Thursday are are a ‘significant step’ in re-shaping Shell’s portfolio in line with its long-term strategy. (AP Photo/Peter Dejong, File)

​Royal Dutch Shell says it has signed two agreements to sell its undeveloped oilsands interests in Canada for a net consideration of US$7.25 billion.

Under the first agreement, the Anglo-Dutch energy giant will reduce its 60 per cent interest in the the Athabasca Oil Sands Project to 10 per cent and sell its 100 per cent interest in the Peace River Complex in-situ assets, including Carmon Creek, and a number of undeveloped oilsands leases in Alberta to a subsidiary of Canadian Natural Resources Ltd.

Shell says it would remain the operator of the project’s Scotford upgrader and Quest carbon capture and storage project. Canadian Natural would be expected to operate Athabasca’s upstream mining assets.

Shell says the deal is worth approximately US$8.5 billion ($11.1 billion Cdn), comprised of $5.4 billion in cash plus around 98 million Canadian Natural shares currently valued at $3.1 billion.

Under the second agreement, which is also subject to regulatory approvals, Shell and Canadian Natural will jointly acquire and own Marathon Oil Canada Corp., which holds a 20 per cent interest in the Athabasca Oil Sands Project, for $1.25 billion each.

The transactions are expected to close in mid-2017, subject to regulatory approvals.

“These assets are an excellent fit for Canadian Natural, a highly experienced oil sands developer,” said Shell Canada president Michael Crothers in a release.

‘Significant step’

Shell CEO Ben van Beurden said the deals are a “significant step” in re-shaping Shell’s portfolio in line with its long-term strategy.

…click on the above link to read the rest of the article…

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai III: Cataclysm
Click on image to purchase