Oil major Shell has made an agreement to sell its entire stake in Canadian Natural Resources Limited, a Calgary-based oil and gas company, in a bid to reduce its debt.
Shell said on Tuesday that its subsidiary, Shell Gas B.V. (SGBV), has entered into an underwriting agreement with Goldman Sachs & Co, RBC Capital Markets, Scotiabank and TD Securities, for the sale of 97,560,975 shares in Canadian Natural.
This represents Shell’s entire interest in Canadian Natural, resulting in total pre-tax proceeds of approximately $3.3 billion.
Canadian Natural has operations in North America, which serve as the foundation of its business with operations in the UK sector of the North Sea and offshore Africa providing international exposure and diversification opportunities.
Shell added that proceeds from the sale will contribute to reducing net debt and the sale is expected to complete on May 9, 2018.
Back in April Shell said in its first quarter 2018 financial report that of its 2016-2018 $30 billion divestment program, $26 billion was complete with more than $6 billion announced or in advanced progress. It is also worth mentioning that Shell’s profit for this year’s first quarter jumped by 42% underpinned by higher oil and gas prices.
When it comes to Canadian Natural’s first quarter 2018 performance, the company’s net earnings increased to $583 million from $245 million in the prior-year quarter helped by record quarterly
Offshore Energy Today Staff