Chevron Canada to sell 30% in Duvernay shale to Kufpec Canada for $1.5 billion

Chevron Corp. said its Chevron Canada Ltd. unit plans to sell a 30% interest in its Duvernay shale play to Kuwait Foreign Petroleum Exploration Co.’s Kufpec Canada Inc. unit for $1.5 billion. Chevron will retain 70% and remain operator.

The deal, which is expected to close in November, will create a partnership for appraisal and development of liquids-rich shale resources in 330,000 net acres in the Kaybob area in west-central Alberta.

Chevron Canada has drilled 16 wells in the area, with initial well production rates as high as 7.5 MMcfd of gas and 1,300 b/d of condensate (OGJ Online, Mar. 13, 2014). A pad drilling program is under way to optimize reservoir performance and reduce costs.

“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 & Production Co.