Kuwait buys stake in Canadian shale play

ShaleCanada's Alberta region has the world's third-largest oil reserves, after Venezuela and Saudi Arabia, estimated at 171bn barrels. (Image source: Wikimedia Commons)State-owned Kuwait Foreign Petroleum Exploration Company (KUFPEC) has signed an agreement to buy 30 per cent stake worth US$1.5bn in Chevron Canada Limited’s Duvernay shale play located in Alberta

The agreement creates a partnership for appraisal and development of shale resources in approximately 1,335 sq km in Duvernay shale play, KUFPEC said.

Jay Johnson, senior vice-president of Chevron Corporation, said, “This partnership demonstrates our focus on strategically managing our portfolio to maximise the value of our global upstream businesses.”

Chevron has drilled 16 exploration wells in the Kaybob area of the Duvernay with initial well production rates of up to 212376 cu/m of natural gas, Johnson added.

The transaction is expected to close in November 2014. Following the closure of the transaction, Chevron Canada Limited will hold 70 per cent interest in the joint venture with KUFPEC and will remain the operator of Duvernay shale play.

Chevron Canada Limited is a wholly-owned subsidiary firm of Chevron Corporation.

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