On October 7, 2024, Chevron Canada Limited, an indirect subsidiary of Chevron Corporation, announced a major step in its portfolio optimization strategy with the sale of its 20% non-operated interest in the Athabasca Oil Sands Project and 70% operated interest in the Duvernay Shale, both located in Alberta, Canada. The assets, which were sold to Canadian Natural Resources Limited, form part of a $6.5 billion all-cash transaction. This deal, effective from September 1, 2024, is expected to close in the fourth quarter of 2024, pending regulatory approvals and other customary conditions.
Strategic Divestment
The sale is a significant part of Chevron’s broader plan to divest $10-15 billion in assets by 2028. These moves are intended to streamline its global operations and focus on enhancing profitability while transitioning towards a lower-carbon future. The divested assets contributed 84,000 barrels of oil equivalent per day (boe/d) to Chevron’s 2023 production, net of royalties, signaling the scale of the operation being sold.
Chevron’s Evolving Energy Portfolio
Chevron is one of the world’s largest integrated energy companies, with activities spanning the production of crude oil and natural gas, refining, transportation fuels, petrochemicals, and the development of advanced technologies aimed at lowering the carbon intensity of its operations. The company remains committed to growing its core oil and gas business, while simultaneously expanding into lower carbon sectors like renewable fuels, carbon capture and storage, and hydrogen.
This sale reflects Chevron's strategy of balancing its traditional energy business with investments in emerging clean technologies, aligning with its long-term sustainability goals and global energy market shifts. The company continues to focus on reducing carbon emissions while meeting growing energy demands worldwide.
Forward-Looking Focus
As Chevron progresses with its plans, the company emphasizes its forward-looking strategy and acknowledges the risks and uncertainties associated with the evolving energy landscape. The completion of the sale marks a crucial milestone in Chevron’s ongoing transformation, positioning the company to capitalize on future opportunities in both the traditional and clean energy sectors.
Strategic Divestment
The sale is a significant part of Chevron’s broader plan to divest $10-15 billion in assets by 2028. These moves are intended to streamline its global operations and focus on enhancing profitability while transitioning towards a lower-carbon future. The divested assets contributed 84,000 barrels of oil equivalent per day (boe/d) to Chevron’s 2023 production, net of royalties, signaling the scale of the operation being sold.
Chevron’s Evolving Energy Portfolio
Chevron is one of the world’s largest integrated energy companies, with activities spanning the production of crude oil and natural gas, refining, transportation fuels, petrochemicals, and the development of advanced technologies aimed at lowering the carbon intensity of its operations. The company remains committed to growing its core oil and gas business, while simultaneously expanding into lower carbon sectors like renewable fuels, carbon capture and storage, and hydrogen.
This sale reflects Chevron's strategy of balancing its traditional energy business with investments in emerging clean technologies, aligning with its long-term sustainability goals and global energy market shifts. The company continues to focus on reducing carbon emissions while meeting growing energy demands worldwide.
Forward-Looking Focus
As Chevron progresses with its plans, the company emphasizes its forward-looking strategy and acknowledges the risks and uncertainties associated with the evolving energy landscape. The completion of the sale marks a crucial milestone in Chevron’s ongoing transformation, positioning the company to capitalize on future opportunities in both the traditional and clean energy sectors.