Canadian Natural Resources Limited announced the completion of an asset swap with Shell Canada Limited related to the Athabasca Oil Sands Project (AOSP). The transaction allows Canadian Natural to take full control of the Albian oil sands mines in exchange for 10% of its interest in the Scotford Upgrader and Quest Carbon Capture and Storage facilities.
The deal, finalized without direct cash consideration except for standard closing adjustments, gives Canadian Natural exclusive rights to bitumen extraction at Albian. Shell now holds a 20% stake in the Scotford Upgrader and Quest facilities, which it will continue to operate. The remainder is owned by Canadian Natural, which retains an 80% non-operated interest in these key infrastructure assets.
Immediate Bitumen Production Addition
This asset swap allows Canadian Natural to add approximately 31,000 barrels per day (bbl/d) of bitumen production to its portfolio, characterized by zero decline. This additional capacity directly contributes to long-term cash flow generation. The company notes that this production is included in its forecasts starting November 1, 2025.
With this addition, current production reaches approximately 1.67 million barrels of oil equivalent per day (MBOE/d). Annual 2025 production guidance is now between 1.56 million and 1.58 million MBOE/d, representing a 15% increase from 2024, based on the midpoint of the new range.
Capital Stability Amid Portfolio Expansion
The forecasted operating capital for 2025 remains unchanged at CAD 5.9 billion (USD 4.29 billion), excluding unbudgeted acquisitions of CAD 690 million (USD 501 million), which includes a previously announced reduction of CAD 100 million. This spending level includes CAD 2.78 billion for oil sands mining and upgrading operations and CAD 3.14 billion for conventional exploration and production, including the completed acquisition of the Palliser Block.
The company also noted a CAD 75 million (USD 54.5 million) allocation for one-time initiatives, including CAD 30 million dedicated to carbon capture. Total capital expenditures for 2025 are forecasted to reach CAD 6.68 billion (USD 4.86 billion), excluding CAD 787 million in abandonment and reclamation costs.
Mining Operations Streamlined
Acquiring full ownership of the Albian mines allows for better integration with the Horizon mine, also operated by Canadian Natural. This consolidation is expected to enable equipment and service sharing, as well as improved operational efficiency across all oil sands mining sites.
Canadian Natural’s President, Scott Stauth, stated that the deal was “a significant milestone for the company” and that it would strengthen long-term value creation through continued operational improvement initiatives.
