Deal insight
| |
10 Pages

Canadian Natural Resources consolidates in the oil sands from Shell and Marathon for US$9.8 billion


Canadian Natural Resources consolidates in the oil sands from Shell and Marathon for US$9.8 billion

Report summary

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.

What's included?

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

Description

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.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Jackpine and Muskeg River Mines
    • Scotford Upgrader and Quest Carbon Capture and Storage (CCS)
    • Producing heavy oil assets
    • Intellectual property
    • Undeveloped leases acquired from both Shell and Marathon
  • Deal analysis
  • Strategic rationale
    • Canadian Natural Resources
    • Shell
    • Marathon
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • CNRL and Shell operated mining leases
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Oil sands deal valuations per flowing bbl
  • Strategic rationale
    • CNRL's share of oil sands production set to climb
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

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...