"The deal will boost production growth from 1% a year to 4% and add 2 billion barrels to its proved and probable reserves. Analysts and investors have previously said that Shell needed an acquisition, or exploration breakthrough, to bolster its production and reserves due to its ageing existing fields."
"Wael Sawan, chief executive of Shell since 2023, said the deal to buy Calgary-based ARC would make Canada a heartland for Shell. He added it would strengthen Shell's resource base for decades to come."
"ARC mainly produces gas and condensate, a liquid that can be used in refineries to make ethylene, and Shell's deal marks its latest push to become one of the largest players in LNG."
Shell has agreed to purchase ARC Resources for $16.4 billion, which includes $13.6 billion in cash and shares, plus assuming $2.8 billion in debt. This acquisition will increase Shell's production growth from 1% to 4% annually and add 2 billion barrels to its reserves. The deal marks Shell's return to North American shale after selling its US shale business in 2021. The acquisition focuses on the Montney shale basin, positioning Canada as a key area for Shell's future resource base.
Read at www.theguardian.com
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