Shell exits oilsands, boosts stake in Scotford upgrader and Quest carbon facility

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CALGARY - Shell Canada Ltd. is exiting the oilsands in a deal with Canadian Natural Resources Ltd. that will see it increase its stake in the Scotford upgrader and Quest Carbon Capture and Storage facility.

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Hey there, time traveller!
This article was published 30/01/2025 (310 days ago), so information in it may no longer be current.

CALGARY – Shell Canada Ltd. is exiting the oilsands in a deal with Canadian Natural Resources Ltd. that will see it increase its stake in the Scotford upgrader and Quest Carbon Capture and Storage facility.

Shell is swapping its remaining 10 per cent stake in the Albian mines in exchange for a 10 per cent interest in the Scotford upgrader and Quest CCS facility. 

The deal will boost Shell’s interest in the upgrader and carbon capture facility to 20 per cent. 

Shell Canada Ltd. is exiting the oilsands in a deal with Canadian Natural Resources Ltd. in an agreement that will see it increase its stake in the Scotford upgrader and Quest Carbon Capture and Storage facility. A Shell logo is seen at a gas station in London, on March 8, 2022. THE CANADIAN PRESS/AP/Frank Augstein
Shell Canada Ltd. is exiting the oilsands in a deal with Canadian Natural Resources Ltd. in an agreement that will see it increase its stake in the Scotford upgrader and Quest Carbon Capture and Storage facility. A Shell logo is seen at a gas station in London, on March 8, 2022. THE CANADIAN PRESS/AP/Frank Augstein

Shell is the operator of the Scotford upgrader and Quest CCS facility, located next to the Shell-owned Scotford refinery and chemicals plants near Edmonton.

The swap stems from a provision in a 2017 deal involving the Athabasca Oil Sands Project. The transaction is subject to regulatory approvals and is expected to close in the first half of this year. 

Shell’s Canadian assets include a 40 per cent stake in LNG Canada, upstream operations in northeast B.C. and northwest Alberta as well as 1,400 Shell-branded sites across the country. 

This report by The Canadian Press was first published Jan. 30, 2025.

Companies in this story: (TSX:CNQ)

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