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Canadian Natural will secure the deals with a loan facility of C$4 billion

Chevron announced on October 7, that it would divest its assets to Canadian Natural Resources worth US$6.5 billion. Chevron would sell its non-operated interest in the Athabasca Oil Sands project and its operated interest in Duvernay shale located in Alberta, Canada.

As a part of Chevron’s plan, it will divest US$10 billion to US$15 billion of assets by 2028. The all-cash transaction is anticipated to be closed during the fourth quarter of 2024.

Canadian Natural  to Obtain 70% interest in light oil and liquids-rich assets from Chevron

Canadian Natural will obtain Chevron’s 70% interest in light oil and liquids-rich assets in the Duvernay play in Alberta.

In 2023, the combined resources added up to 84,000 barrels of oil equivalent per day (boepd) to Chevron's output.

Canadian Natural president Scott Stauth said, “These assets are a great fit,” with the company expecting “further efficiencies and improved performance,” at AOSP.

After these agreements are finalized, the firm's available cash will be allocated 60% to its shareholders and 40% to its assets until the total debt amount hits C$15 billion.

Mark Stainthorpe, Canadian Natural’s chief financial officer, said that the company’s “strong balance sheet and significant free cash flow generation allowed it to take advantage of opportunities that don’t come along very often”.

Canadian Natural to Secure Deals through a C$4 Billion Loan

Canadian Natural will secure the deals with a loan facility of C$4 billion. The loan is provided by The Bank of Nova Scotia and the Royal Bank of Canada along with existing cash and committed bank facilities.