07:21 AM EDT, 10/07/2024 (MT Newswires) -- Chevron ( CVX ) is offloading some of its Canadian assets and interests as it continues plans to slim down its global energy portfolio through divestments, it said Monday.

The oil giant's subsidiary, Chevron Canada, agreed to sell its 20% non-operated interest in the Athabasca Oil Sands Project and a 70% operated interest in the Duvernay shale to Canadian Natural Resources ( CNQ ) for $6.5 billion in cash.

The effective date of the transaction for the Alberta-based assets is Sept. 1, the companies said. The deal requires approval from regulators and is anticipated to be completed in the fourth quarter.

Altogether, the assets contributed about 84,000 barrels of oil equivalent production per day in 2023, Chevron ( CVX ) said. The sale is in line with its plan to divest $10 billion to $15 billion in assets by 2028, it added.

Chevron's ( CVX ) shares were up 1.3% in premarket activity while Canadian Natural Resources' ( CNQ ) US-listed stock added 1.9%.

The deal also includes the acquisition of interests in other non-producing oil sands leases, Canadian Natural said in a separate statement. The company plans to finance the purchase through a CA$4 billion ($2.9 billion) loan with existing cash and committed bank facilities.

"These assets are a great fit for Canadian Natural and will allow us to further implement our strong operating culture and drive significant value for shareholders," President Scott Stauth said in the statement. "We expect further efficiencies and improved performance going forward."

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