CALGARY, AB, Feb. 17, 2021 /CNW/ – Royal Dutch Shell plc, through its affiliate Shell Canada Energy (“Shell”), has reached an agreement with publicly listed Canadian energy company Crescent Point Energy Corp. (“Crescent Point”) to sell its Duvernay shale light oil position in Alberta, Canada for a total consideration of $707 million (C$900 million). The transaction has an effective date of January 1, 2021.
The consideration is comprised of $550 million in cash and 50 million shares (valued at $157 million) in Crescent Point Energy common stock (TSX:CPG). Subject to regulatory approvals, the transaction is expected to close in April 2021.
“Divesting these assets underpins Shell’s effort to focus the Upstream portfolio to deliver cash,” said Wael Sawan, Upstream Director at Shell. “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.”
The transaction includes the transfer of approximately 450,000 net acres in the Fox Creek (Kaybob) and Rocky Mountain House (Willesden Green) areas, along with related infrastructure, currently producing around 30,000 barrels of oil equivalent per day (boe/d) from more than 270 wells. Crescent Point Energy will retain the field employees and several technical and commercial roles that support the assets.
Shell has been operating in Canada for more than 100 years and remains committed to the country’s energy future. Shell’s footprint in Canada includes a 40% interest in LNG Canada; shale gas positions in British Columbia (Groundbirch) and shale gas and liquids positions in Alberta (Gold Creek); the Scotford Complex in Alberta, identified as one of Shell’s six high-value energy and chemicals parks; investments in cleaner energy, including the first waste-to-low-carbon-fuels plant in Québec; and a growing Retail business with around 1,400 Shell-branded sites across Canada, among others.