Shell is divesting the majority of its oil sands business to CNRL for Cdn$11.1 billion (US$8.5 billion). In a separate deal, Marathon makes its exit from the resource for Cdn$3.3 billion (US$2.5 billion). The flagship asset from both portfolios is the 255,000-b/d Athabasca Oil Sands Project. CNRL will now operate the mining project with a 70% stake while Shell drops to 10% and Chevron maintains 20%. The exodus of international companies from the Canadian oil sands continues. Shell and Marathon join Statoil and Murphy as companies who have either divested mostly or entirely from the sector during this price downturn. Shell also has the option to later divest entirely of its remaining 10% mining interest. This is part of a process of moving portfolios lower down the cost curve (for instance into US tight oil and advantaged deepwater basins) and to gas. Exiting oil sands mining removes a high cost resource theme from the portfolio with decarbonisation also being a theme.
This report includes 1 file(s)
Canadian Natural Resources consolidates in the oil sands from Shell and Marathon for US$9.8 billion PDF - 4.31 MB 10 Pages, 7 Tables, 3 Figures
The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.
This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.
This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.
For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.
Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Deal insight | Mar 2017
Canadian Natural Resources consolidates in the oil sands from Shell and Marathon for US$9.8 billion
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.