Shell increases interest in Scotford upgrader and Quest CCS facility and fully exits oil sands

CALGARY, AB, Jan. 29, 2025 /CNW/ -- Shell Canada Limited and affiliates ("Shell") and Canadian Natural Resources Limited (Canadian Natural) had agreed to a provision in the 2017 Athabasca Oil Sands Project ("AOSP") transaction, where Shell will swap its remaining 10 per cent interest in the Albian mines in exchange for an additional 10 per cent interest in the Scotford upgrader and Quest Carbon Capture and Storage (CCS) facility. Post deal completion, Shell will have a 20 per cent interest in the Scotford upgrader and Quest CCS facility and will fully exit AOSP's mining operations.

Shell will remain as operator of the Scotford upgrader and Quest CCS facility, located next to the 100 per cent Shell owned Scotford refinery and chemicals plants near Edmonton, Alberta. 

"Today's announcement allows Shell to focus on the Scotford site and to maximize value in our Upgrader, CCS projects and Refining and Chemicals businesses," said Machteld de Haan, Executive Vice-President, Chemicals and Products.

The transaction is subject to regulatory approvals and is expected to close in Q1 2025.

Notes to editors 

• Shell developed the Athabasca Oil Sands Project as 60 per cent equity owner. In 2017, the ownership of AOSP was divested and is currently held by Canadian Natural at 80 per cent, and 1745844 Alberta Limited ("1745AB") at 20 per cent. 1745AB is jointly owned 50-50 by Shell and Canadian Natural.
• Shell's remaining mining interest and associated synthetic crude oil reserves will be exchanged through a cashless swap for an additional 10 per cent interest (20 per cent in total) in the Scotford upgrader and Quest CCS facility.
• 1745AB is reported in Shell's Chemicals and Products segment as a fully consolidated joint venture. 2024 production was approximately 51,000 barrels of oil equivalent per day on a fully consolidated basis, 50 per cent of which is attributable to non-controlling interest.
• The swap will result in the de-booking of associated proved reserves, which at the end of 2024 were 741 million barrels, 50 per cent of which is attributable to non-controlling interest.
• Shell's Canadian business includes a 40 per cent interest in LNG Canada, upstream operations in Northeast British Columbia and Northwest Alberta, the Scotford Energy and Chemicals Park in Alberta, the Sarnia Manufacturing Centre in Ontario and around 1,400 Shell-branded sites across the country.

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Forward-looking Statements 

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Shell's Net Carbon Intensity 

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Shell's net-zero emissions target 

Shell's operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell's operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell's operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target. 

Forward-looking non-GAAP measures 

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SOURCE Shell

Americas Media Relations: Americas Media Relations Team, https://www.shell.us/about-us/news-and-insights/media/submit-an-inquiry.html