Shell to sell 206,000 acres of Canadian assets to Tourmaline Oil
PUBLISHED: 09:26 21 October 2016 | UPDATED: 09:26 21 October 2016
Royal Dutch Shell has announced it will sell off some of its Canadian oil and gas assets for more than $1bn (£815m).
The company said it has agreed to sell approximately 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil Corp, including properties across north-east British Columbia and west-central Alberta.
After the sale, Shell will still own more than 600,000 net acres in oil and gas lands across the two provinces.
Shell upstream director Andy Brown said: “Shell retains a significant shale position in Canada and we are actively working to mature our attractive core asset base.
“At the same time, we are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans.”
The move is in line with Shell’s divestment plans, having announced major cost-cutting plans in July following a major slide in oil prices. Shell is currently targeting $30bn (£24.5bn) in asset sales between 2016 and 2018.
The fall in oil prices has had a major impact on oil producers and service companies across the world, having dropped more than 50% since the recent peak of around $115 (£94) per barrel in June 2014.
Brent crude prices have been hovering near $51 (£42) per barrel.