Shell selling Canadian shale assets for $1 billion
Friday October 21, 2016
Royal Dutch Shell has agreed to sell off Canadian shale assets to Tourmaline Oil for $1.04 billion, its latest in a string of transactions aimed at shedding assets to make room for its recently acquired BG Group.
Shell’s 206,000 net acres in Western Canada produce 25,000 barrels of oil equivalent a day, about 85 percent natural gas. Shell said the deal could close in the fourth quarter.
The Anglo-Dutch oil major plans to sell off $30 billion in assets as it integrates British gas producer BG Group into its corporate fold. It bought BG Group for about $50 billion earlier this year.
Houston investment bank Tudor, Pickering, Holt & Co. said it believes the rest of Shell’s assets in Western Canada would be worth about $2 billion if oil prices reach $70 a barrel and natural gas prices rose.