According to the Wisdom Financial APP, Chevron (CVX.US) has agreed to sell its stake in Western Canadian oil sands and shale assets to Canadian Natural Resources (CNQ.US) for 6.5 billion USD.

According to a statement by Chevron on Monday, the transaction involves Chevron's 20% interest in the Athabasca Oil Sands Project and 70% stake in the Duvernay Shale in Alberta province. This all-cash transaction will take effect on September 1st and is expected to be completed in the fourth quarter, subject to regulatory approval.

At the time of this asset sale, Chevron is increasingly focusing its growth plans more on other regions of the world, especially the Permian Basin in the USA and the Tengiz Field in Kazakhstan, where a 48.5 billion USD expansion project is nearing completion.

Chevron is also acquiring Hess (HES.US) for 53 billion USD, giving Chevron a stake in a large offshore oil field in Guyana, one of the global exploration hotspots.

Chevron is the latest major oil producer to divest its stake in the Canadian oil sands business. In recent years, BP plc (BP.US), Shell (SHEL.US), ConocoPhillips (COP.US), Equinor (EQNR.US), and Devon Energy (DVN.US) have all sold shares in Alberta mines and fields to local companies. This means control of the oil sands is concentrated in the hands of Canadian producers like Canadian Natural Resources, Cenovus Energy (CVE.US), and Suncor Energy (SU.US).

Oil sands are one of the most destructive energy assets in terms of climate change. The crude oil in this basin must be mined from the ground or extracted from wells injected with steam, making it one of the highest carbon-emitting oils in the world.

Canada's oil sands have been in production for decades, but since the completion of the Trans Mountain Pipeline expansion, the industry is undergoing significant changes, opening up the Asian market for the country's crude oil.

Previously, the Canadian oil industry relied on pipelines to the United States and US refineries, leading to larger discounts on its crude oil prices and vulnerability to price shocks. From June to mid-September, the pipeline expansion increased the country's west coast crude oil transportation by 28 million barrels, with nearly two-thirds heading to China, India, South Korea, and Brunei.

The Duvernay shale formation is located in the southwest of Alberta province, a rich production area for condensate, light oil, and natural gas. Chevron has been one of the largest drilling companies in the region. Canadian Natural Resources stated in a declaration that by 2025, the average daily production of these assets is expected to reach approximately 0.06 million barrels of oil, with a daily gas production of about 0.179 billion cubic feet and a daily production of 0.03 million barrels of liquefied natural gas.

Canadian Natural Resources provided funding for this transaction through a 4 billion US dollars term loan provided by Bank of Nova Scotia and Royal Bank of Canada. On the same day, Canadian Natural Resources also announced a 7% increase in quarterly dividends.