CNQ finalizes acquisition of 70% of Athabasca Oil Sands Project
Canadian Natural Resources Limited (ticker: CNQ) announced today that it has completed the acquisition of 70% of the Athabasca Oil Sands Project.
The remaining 30% of the working interest is broken down between Chevron Canada Limited—which retains 20% and Shell Canada Limited—which retains 10%, according to a press release on May 31st, 2017.
Shell was awarded 97.56 million common shares of Canadian Natural, and a cash payment of $8.24 billion was made to Shell and Marathon Oil Corporation. A remaining payment of $375 million dollars will also be made to Marathon Oil by Q1 of 2018.
Canadian Natural will begin full operation of the Athabasca Oil Sands as of June 1st, 2017 and intends to produce between 173,000-191,000 BOPD. Additionally, the Peace River properties, of which Canadian Natural now holds a 100% interest, are expected to produce between 12,000-14,000 BOPD.
Canadian Natural will bring in approximately 2,800 employees from Shell and Marathon Oil to its teams in Fort McMurray, the Peace River region and the Calgary head office when it commences as operator of the AOSP mines on June 1.
