Devon completes exit from Canada as CNRL deal closes

Image: Joey Podlubny/JWN

Oklahoma-based Devon Energy is officially no longer an operator in Canada after more than 20 years as an oilsands industry leader.

The company’s asset sale to powerhouse Canadian Natural Resources Limited was completed on June 27, approximately one month after it was announced.

It's the latest divestment of Canadian oilsands assets by a major international player in a series that includes Royal Dutch Shell, ConocoPhillips, Murphy Oil and Equinor.

For a purchase price of $3.78 billion, Canadian Natural is now the owner of approximately 130,000 bbls/d of new production, primarily from Devon’s Jackfish SAGD complex.

“Canadian Natural welcomes approximately 720 high caliber Devon employees to its thermal in situ, primary heavy oil and Calgary head office teams,” the company said in a statement on Thursday.

“The acquired production, infrastructure and land will add to Canadian Natural’s existing thermal in situ and primary heavy oil areas providing synergies to more effectively and efficiently operate, upon full integration of the employees and the assets.”

Devon said it plans to use the proceeds of the deal to pay down debt. It also continues to advance the divestiture process for its Barnett Shale gas assets in order to complete its “transformation to a high-return U.S. oil growth business.” The company expects to exit these assets by the end of this year.

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