Chevron’s Duvernay Shale Assets Are on the Block
Oil giant looks to shed Canadian tight-oil assets as it moves to wrap up merger with rival Hess.
Chevron has hung the for sale sign out on its entire 70% working interest in the Duvernay shale and tight play in Alberta, Canada. The asset comprises 340,000 gross acres located around 260 km northwest of the city of Edmonton.
The operator averaged production of 17,500 B/D of condensate and natural gas liquids and 126 MMcf/D of natural gas from the field in 2022.
“The business holds significant value in both its current production as well as potential growth opportunities, which we expect to be attractive to other companies with complementary portfolios,” the company said in a statement. “This decision only impacts Chevron’s interests in the Duvernay. Chevron’s other Canadian interests are not affected.”
The sale is part of Chevron’s overall plan to shed up to $15 billion in assets between now and 2028. This realignment is due in part to the company’s recent $53 billion acquisition of rival Hess.
KUFPEC Canada Inc., a wholly owned subsidiary of the Kuwait Foreign Petroleum Exploration Company, holds the remaining 30% interest in Chevron Canada’s Duvernay lease holdings. Chevron said it will continue to work closely with KUFPEC Canada, business partners, government, First Nations, and community organizations during the sale process.
“Chevron will be soliciting and reviewing expressions of interest, but there are no assurances of any sale,” the company added.
In early 2021, Shell sold its Duvernay shale position—450,000 net acres and around 30,000 BOED of production from more than 270 wells—to Crescent Point Energy for $707 million. At the time, Shell was looking to focus on assets that delivered better cash value.