Royal Dutch Shell, the oil giant known for products like Shell Omala S2 G 320 and Shell Gadus S2 V100 3, is set to sell $1bn of Western Canadian assets in a bid to raise money and streamline its operations.
The company has confirmed that it has secured a deal to sell $1bn of gas and shale oil assets in the Western Canada area as part of an ongoing global divestment program. Speaking on Thursday, October 20, a spokesperson for Shell said that the energy major would sell both developed and undeveloped land in the Canadian provinces of British Columbia and Alberta to Tourmaline Oil Corp, which is based in Calgary.
The assets being sold currently produce natural gas liquids and dry gas equivalent to around 24,850 barrels of oil per day.
In a statement, Shell’s exploration and production business head Andy Brown said the move would strengthen the company’s shales business while also helping shareholders, as it has no immediate plans to use these assets.
The deal was announced as Shell aims to shed $30bn worth of assets globally following the oil giant’s $50bn acquisition of BG Group PLC, which took place back in February. It also represents an increasing pullout of the company from Canada, where just last year it put aside plans for a massive new oil sands project.
Despite offloading almost 206,00 net acres to Tournaline, Shell will be retaining 430,000 acres in Alberta and 218,000 net acres in British Columbia.