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Chevron Announces US$6.5 bn Sale of Its Interests in the Athabasca Oil Sands Project and Duvernay Shale

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Chevron Canada , a subsidiary of Chevron (CVX), has announced a US$6.5 billion all-cash sale of its interests in the Athabasca Oil Sands Project and Duvernay shale to Canadian Natural Resources The transaction includes:

  • 20% non-operated interest in the Athabasca Oil Sands Project
  • 70% operated interest in the Duvernay shale
  • Related interests in Alberta, Canada

The deal has an effective date of September 1, 2024, and is expected to close in Q4 2024, subject to approvals. The assets contributed 84,000 boe/d of production to Chevron in 2023. This sale aligns with Chevron's plan to divest $10-15 billion in assets by 2028 to optimize its global energy portfolio.

Chevron Canada, una controllata di Chevron (CVX), ha annunciato una vendita in contante di 6,5 miliardi di dollari USA dei suoi interessi nel Progetto delle Sabbie Bituminose di Athabasca e nel shale Duvernay a Canadian Natural Resources. La transazione include:

  • 20% di interesse non operativo nel Progetto delle Sabbie Bituminose di Athabasca
  • 70% di interesse operativo nello shale Duvernay
  • Interessi correlati in Alberta, Canada

L'accordo ha una data di efficacia del 1 settembre 2024 ed è previsto che si chiuda nel quarto trimestre del 2024, soggetto ad approvazioni. Gli attivi hanno contribuito con 84.000 boe/giorno di produzione a Chevron nel 2023. Questa vendita è in linea con il piano di Chevron di disinvestire da 10 a 15 miliardi di dollari in attivi entro il 2028 per ottimizzare il suo portafoglio energetico globale.

Chevron Canada, una subsidiaria de Chevron (CVX), ha anunciado una venta en efectivo de 6.5 mil millones de dólares estadounidenses de sus intereses en el Proyecto de Arenas Bituminosas de Athabasca y en el shale Duvernay a Canadian Natural Resources. La transacción incluye:

  • 20% de interés no operativo en el Proyecto de Arenas Bituminosas de Athabasca
  • 70% de interés operativo en el shale Duvernay
  • Intereses relacionados en Alberta, Canadá

El acuerdo tiene una fecha de efectividad del 1 de septiembre de 2024 y se espera que se cierre en el cuarto trimestre de 2024, sujeto a aprobaciones. Los activos contribuyeron con 84,000 boe/día de producción a Chevron en 2023. Esta venta se alinea con el plan de Chevron de desinvertir entre 10 y 15 mil millones de dólares en activos para 2028 para optimizar su cartera energética global.

Chevron Canada는 Chevron (CVX)의 자회사로서 65억 달러의 현금 매각을 발표했습니다. 이는 아타바스카 오일 샌드 프로젝트두버네 쉐일에 대한 Canadian Natural Resources에 대한 매각입니다. 이 거래에는 다음이 포함됩니다:

  • 아타바스카 오일 샌드 프로젝트에서 20% 비운영 지분
  • 두버네 쉐일에서 70% 운영 지분
  • 캐나다 앨버타의 관련 자산

이번 거래는 2024년 9월 1일에 효력 발생되며, 승인 조건에 따라 2024년 4분기에 마감될 것으로 예상됩니다. 이러한 자산은 2023년에 Chevron에 84,000 boe/일의 생산량을 기여했습니다. 이번 매각은 Chevron의 2028년까지 100억~150억 달러의 자산을 매각하려는 계획에 부합합니다.

Chevron Canada, une filiale de Chevron (CVX), a annoncé une vente en espèces de 6,5 milliards de dollars US de ses intérêts dans le projet des sables bitumineux d'Athabasca et dans le schiste Duvernay à Canadian Natural Resources. La transaction comprend :

  • 20 % d'intérêt non exploité dans le projet des sables bitumineux d'Athabasca
  • 70 % d'intérêt exploitant dans le schiste Duvernay
  • Intérêts connexes en Alberta, Canada

Le contrat a une date d'effet au 1er septembre 2024 et devrait être finalisé au quatrième trimestre 2024, sous réserve d'approbations. Les actifs ont contribué 84 000 boe/jour de production à Chevron en 2023. Cette vente s'inscrit dans le plan de Chevron de décaisser entre 10 et 15 milliards de dollars d'actifs d'ici 2028 pour optimiser son portefeuille énergétique mondial.

Chevron Canada, eine Tochtergesellschaft von Chevron (CVX), hat den verkauf von 6,5 Milliarden US-Dollar in bar für ihre Interessen am Athabasca-Ölsandprojekt und am Duvernay-Schiefer an Canadian Natural Resources bekanntgegeben. Die Transaktion umfasst:

  • 20% nicht betriebliches Interesse am Athabasca-Ölsandprojekt
  • 70% betriebliches Interesse am Duvernay-Schiefer
  • Verwandte Interessen in Alberta, Kanada

Der Deal hat ein Wirksamkeitsdatum vom 1. September 2024 und soll im 4. Quartal 2024, vorbehaltlich der Genehmigungen, abgeschlossen werden. Die Anlagen trugen 2023 mit 84.000 boe/Tag an Produktion zu Chevron bei. Dieser Verkauf steht im Einklang mit Chevrons Plan, bis 2028 10 bis 15 Milliarden US-Dollar an Vermögenswerten zu veräußern, um ihr globales Energieportfolio zu optimieren.

Positive
  • US$6.5 billion all-cash transaction strengthens Chevron's financial position
  • Progresses towards Chevron's asset divestment goal of $10-15 billion by 2028
  • Optimizes Chevron's global energy portfolio
Negative
  • Loss of 84,000 boe/d production from divested assets
  • Reduction in Chevron's presence in Canadian oil sands and shale operations

SAN RAMON, Calif.--(BUSINESS WIRE)-- Chevron Canada Limited, an indirect subsidiary of Chevron Corporation (“Chevron”), announced today that it and a related entity have entered into a definitive agreement to sell their 20 percent non-operated interest in the Athabasca Oil Sands Project, 70 percent operated interest in the Duvernay shale, and related interests, all located in Alberta, Canada, to Canadian Natural Resources Limited.

The US$6.5 billion all-cash transaction has an effective date of September 1, 2024, and is expected to close during the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.

The assets subject to the agreement contributed 84 thousand boe/d of production, net of royalties, to Chevron in 2023. This transaction progresses Chevron’s previously announced plans to divest $10-15 billion in assets by 2028 to optimize its global energy portfolio.

About Chevron

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

NOTICE

As used in this news release, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and “its” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

Please visit Chevron’s website and Investor Relations page at www.chevron.com and www.chevron.com/investors, LinkedIn: www.linkedin.com/company/chevron, Twitter: @Chevron, Facebook: www.facebook.com/chevron, and Instagram: www.instagram.com/chevron, where Chevron often discloses important information about the company, its business, and its results of operations.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements relating to Chevron’s operations and lower carbon strategy that are based on management’s current expectations, estimates, and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “progress,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential,” “ambitions,” “aspires” and similar expressions, and variations or negatives of these words, are intended to identify such forward-looking statements, but not all forward-looking statements include such words. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for the company’s products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics and epidemics, and any related government policies and actions; disruptions in the company’s global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine, the conflict in Israel and the global response to these hostilities; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; development of large carbon capture and offset markets; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures related to greenhouse gas emissions and climate change; the potential liability resulting from pending or future litigation; the risk that regulatory approvals with respect to the Hess Corporation (Hess) transaction are not obtained or are obtained subject to conditions that are not anticipated by the company and Hess; potential delays in consummating the Hess transaction, including as a result of regulatory proceedings or the ongoing arbitration proceedings regarding preemptive rights in the Stabroek Block joint operating agreement; risks that such ongoing arbitration is not satisfactorily resolved and the potential transaction fails to be consummated; uncertainties as to whether the potential transaction, if consummated, will achieve its anticipated economic benefits, including as a result of regulatory proceedings and risks associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the potential transaction that are not waived or otherwise satisfactorily resolved; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement with Hess; risks that the anticipated tax treatment of the potential transaction is not obtained; unforeseen or unknown liabilities or unexpected future capital expenditures relating to Hess; potential litigation relating to the potential transaction that could be instituted against the company or its respective directors; the possibility that the potential transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the effect of the pendency or completion of the potential transaction on the company’s business relationships and business generally; the company’s ability to integrate Hess’ operations in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the potential transaction will not be realized or will not be realized within the expected time period; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; higher inflation and related impacts; material reductions in corporate liquidity and access to debt markets; changes to the company’s capital allocation strategies; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 26 of the company’s 2023 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

For media inquiries contact:

Paula Beasley

Paula.Beasley@chevron.com

+1 281-728-4426

Randy Stuart

randystuart@chevron.com

+1 713-283-8609

Source: Chevron Corporation

FAQ

What assets is Chevron (CVX) selling in Canada?

Chevron is selling its 20% non-operated interest in the Athabasca Oil Sands Project, 70% operated interest in the Duvernay shale, and related interests in Alberta, Canada.

How much is Chevron (CVX) receiving for the Canadian asset sale?

Chevron is receiving US$6.5 billion in an all-cash transaction for the sale of its Canadian assets.

When is the Chevron (CVX) Canadian asset sale expected to close?

The sale is expected to close during the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.

How does this sale align with Chevron's (CVX) broader strategy?

This sale progresses Chevron's plans to divest $10-15 billion in assets by 2028 to optimize its global energy portfolio.

What was the production output of the assets Chevron (CVX) is selling in Canada?

The assets being sold contributed 84 thousand boe/d of production, net of royalties, to Chevron in 2023.

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