Chevron Canada Ltd. is selling 30 per cent of its interest in Alberta’s Duvernay Shale to Kuwait Foreign Petroleum Exploration Co. (KUFPEC) for $1.5 billion US.
Chevron Canada, a wholly owned unit of U.S.-based Chevron, has drilled 16 wells since it began exploring in the Duvernay area, about 200 km northeast of Edmonton.
Chevron sold a 30 per cent interest in the Duvernay shale formation for $1.5 billion US. (Chevron)
It bought an expanded stake in the area just last August.
Chevron plans to partner with KUFPEC Canada Inc. to develop its properties in the area and will continue to manage the joint venture.
It said the deal with KUFPEC was a way to strategically manage its growth.
Oil prices are in decline, with WTI futures falling from about $104 US a barrel in June to below $90 US today.
Companies throughout the oilpatch have been putting developments on hold and slowing projects as it becomes increasingly difficult to make them commercially viable.
Total SA and its partner Suncor and Norway’s Statoil have delayed planned oilsands projects.
But Chevron says the Duvernay shale seems promising and it plans to keep developing there, with its global partner.
Initial well production rates of up to 7.5 million cubic feet of natural gas and 1,300 barrels of condensate per day
“We remain encouraged by the early results of our exploration program and view the Kaybob Duvernay as an exciting growth opportunity for the company,” said Jeff Shellebarger, president of Chevron North America exploration and production