Chevron says it would sell a 30% stake in its Duvernay shale properties in Canada to Kuwait Foreign Petroleum Exploration Co. for $1.5 billion.
Oct 6 (Reuters) - Chevron Corp said it would sell a 30 percent stake in its Duvernay shale properties in Canada to Kuwait Foreign Petroleum Exploration Co for $1.5 billion.
Chevron's Canadian subsidiary has exploration leases for about 330,000 net acres (1,335 square km) in the Duvernay shale formation. The area is located about 124 miles (200 km) northwest of Edmonton, Alberta.
The deal also creates a partnership for appraisal and development of liquids-rich shale resources in the Kaybob area of the Duvernay, Chevron said.
Chevron Canada will remain the operator and will hold a 70 percent interest in the partnership following the deal close, expected in November.
The deal price includes a portion of Chevron Canada's share of future capital costs for the joint venture.
Duvernay is widely viewed as one of North America's most exciting shale fields. Chevron Canada boosted its holdings in the field in August 2013, buying 67,900 net acres from Alta Energy Luxembourg SARL.
Chevron Canada has drilled 16 wells since beginning its exploration program in the Duvernay in 2011, recording initial well production rates of up to 7.5 million cubic feet of natural gas and 1,300 barrels of condensate per day.
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