Canadian Natural Resources acquires Chevron’s Alberta assets for US$6.5 billion

On October 7, 2024, Canadian Natural Resources Limited (CNRL) announced the acquisition of Chevron Canada Limited’s 20% interest in the Athabasca Oil Sands Project (AOSP) and a 70% interest in Duvernay assets in Alberta for a total cash consideration of $6.5 billion USD (approximately $8.8 billion CAD at the exchange rate of 1.35), subject to regulatory approvals. This acquisition increased CNRL’s stake in AOSP to 90%, adding approximately 62,500 barrels per day of Synthetic Crude Oil (SCO) production and significant non-producing oil sands leases. The Duvernay assets were expected to produce 60,000 barrels of oil equivalent per day in 2025. The transaction’s effective date was September 1, 2024, with closing anticipated in the fourth quarter of 2024. CNRL financed the deal with a fully committed $4 billion CAD term loan provided by The Bank of Nova Scotia and the Royal Bank of Canada, supplemented by existing cash and bank facilities. The deal aimed to enhance CNRL's cash flow and production capabilities, enabling further shareholder returns and a 7% dividend increase.

Deal Type

Merger & Acquisition

Industry

Energy

Transaction

$ 8,800,000,000

Deal Status

Active

Closing Date