$7.25bn sell-off is part of plan to divest over $30bn in assets to reduce debts
Royal Dutch Shell is to sell off most of its oil sands assets in Canada through a set of transactions totalling $7.25 billion (£6 billion).
Canadian Natural Resources has agreed to buy Shell’s 100% holding in the Peace River complex, including undeveloped oil sands in Alberta. Shell will also sell Canadian Natural Resources part of its share of the Athabasca Oil Sands Project, leaving it with a 10% stake, down from 60%. In a separate agreement, Shell and Canadian Natural Resources will together buy Marathon Oil Canada, which owns 20% of the Athabasca Oil Sands Project. Canadian Natural Resources will operate the mining and extraction side of the Athabasca project, while Shell will continue to run the associated upgrader and carbon capture and storage project.
These divestments add to a string of transactions as Shell aims to sell off $30 billion of assets in the wake of its acquisition of BG group in 2016.