Royal Dutch Shell has sold almost all of its Canadian oil sands activities in a $7.25-billion (6.9-billion-euro) deal, the Anglo-Dutch energy giant said Thursday. Shell said in a statement that it has signed agreements to sell its interests in two oil sands projects, Athabasca and Peace River, to Canadian Natural Resources Limited for $8.5 billion in cash and stocks.
At the same time, Shell and Canadian Natural will jointly purchase Marathon Oil Canada Corporation, which holds a 20 percent interest in the Athabasca project, from an affiliate of Marathon for $1.25 billion each. Shell will therefore receive a net $7.25 billion in the vast transaction, which is subject to regulatory approvals and pegged for completion in mid-2017.
The deal is part of a huge $30-billion divestment plan as Shell streamlines its portfolio following the blockbuster take-over of rival BG Group last year. "This announcement is a significant step in re-shaping Shell's portfolio in line with our long-term strategy," said Chief Executive Ben van Beurden in Thursday's statement.