Royal Dutch Shell, through its affiliate Shell Canada Energy, has reached an agreement with Canadian energy company Crescent Point Energy to sell its Duvernay shale light oil position in Alberta, Canada for a total consideration of C$900 million.
Shell – which has been operating in Canada for more than 100 years – said the transaction includes the transfer of approximately 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.
Under the agreement, Crescent Point Energy will retain the field employees and several technical and commercial roles that support the assets.
Wael Sawan, Upstream Director at Shell, said the transaction – subject to regulatory approvals – is expected to close in April 2021.
“Divesting these assets underpins Shell’s effort to focus the Upstream portfolio to deliver cash,” Mr Sawan continued.
“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.”