Shell sells its Canadian oil assets for about $1 billion

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Shell has sold 206,000 of oil and gas fields to Canadian Tourmaline Oil Corp. According to Oilprice.com, the deal is worth over US$1 billion and became a part of a larger Shell’s divestment plan. The acreages are located in Canada’s regions of Alberta and British Columbia and produce jointly 24,850 barrels of oil equivalent per day.

The buyer says that the deal will comprise a cash payment of US$758 million plus US$279 million worth of Tourmaline stock. The two companies plan to close the deal by the end of the year. By purchasing the Shell’s assets Tourmaline Oi will immediately increase its total output by 13 percent and expand its portfolio by probable reserves of 474 million barrels. The company expects that the current level of production will be doubled within the coming two years.

Shell is now selling a large number of its assets to cover the debt which occurred due to the purchase of BG Group closed early this year. The company has also shelved or closed promising projects including a LNG project in Australia, where it cooperated with BP, PetroChina, and Woodside.