The sale is part of the company’s broader strategy to streamline its global operations following a series of significant acquisitions.
Covering approximately 235,000 acres, the Duvernay assets produce around 40,000 barrels of oil and gas per day. These assets are estimated to be worth up to $900m, according to Houston-based advisory firm Energy Advisors Group.
A company spokesperson told Reuters: “We have a strong position and are proud of our performance in the Duvernay.
“The business holds significant value in both its current production as well as potential growth opportunities, which we expect to be attractive to other companies with complementary portfolios.”
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The spokesperson said that the company’s other operations in Canada would remain unaffected by this sale.
Chevron previously stated that it will concentrate more than 75% of its upstream capital expenditures on strategic locations including US shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan.
In addition to the asset sale, Chevron is looking to diversify its portfolio by selling high-return assets. This strategy aims to balance asset types and geographies, focusing on achieving high cash margins and low-carbon-intensity production.
In October 2023, Chevron agreed to buy oil and gas producer Hess for $53bn in an all-stock transaction, indicating its belief that demand for fossil fuels will remain in years to come.
The deal, which is subject to regulatory approvals, is due to close in the second half of 2024.