Leading global energy company Royal Dutch Shell has announced that it will be selling its entire stake in Canadian Natural Resources, estimated to be at around 8%, for USD$3.3bn.
“Shell’s subsidiary, Shell Gas BV, has entered into an underwriting agreement with Goldman Sachs & Co, RBC Capital Markets, Scotiabank and TD Securities, for the sale of 97.56mn shares in Canadian Natural, representing its entire interest in Canadian Natural resulting in total pre-tax proceeds of approximately $3.3bn,” Shell said.
Shell acquired Canadian the stake in Canadian Natural as part of a $7.25bn deal that saw the firm selling off its entire Canadian oil sands interest, bar its 10% stake in the Athabasca project, in March 2017.
Much like this previous sale, the proceeds from the sale of Canadian Natural will be used to reduce the company's outstanding debt after this soared following its acquisition of BG Group in 2016. Shell is currently pursuing a divestment target of $30bn.
The transaction is expected to complete on 9 May 2018.