Devon sells Canadian operations to Canadian Natural
May 29, 2019
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Canadian Natural Resources Ltd. has signed a deal to buy the Canadian operations of Devon Energy Corp. for $3.8 billion.
The assets include thermal in situ oil sands production and conventional primary heavy crude oil operations located adjacent to existing Canadian Natural assets, according to Canadian Press.
The production acquired under the deal totals 128,300 barrels per day, including 108,200 from the thermal in situ operations and 20,100 from the conventional operations.
Canadian Natural says the deal also includes 607,000 hectares of land, of which 405,000 hectares are undeveloped, providing significant upside value and opportunities.
Devon, which put its Canadian assets up for sale February, is the latest foreign company to reduce its ownership in the oil sands in recent years. Other companies that have made similar moves include Norway’s Statoil, France’s Total SA, Arkansas-based Murphy Oil and Houston-based ConocoPhillips.
The transaction, which is subject to normal closing conditions and regulatory approvals, is expected to close June 27.