Shell Announced Its Biggest Deal In A Decade

Details.

British corporation Shell has announced the purchase of Canadian company ARC Resources, engaged in the production of oil and natural gas. The deal, which will be paid mostly in shares, is valued at $16.4 billion including debt assumed, writes Reuters. This is Shell's largest acquisition since it bought gas giant BG in 2015.

The acquisition of ARC will increase Shell's production by 370,000 barrels of oil equivalent per day from 2.8 million barrels of oil equivalent per day. Experts and analysts of Shell itself have recently emphasized that the company needs to find new assets due to the depletion of existing fields.

Shell said that as a result of the purchase of ARC, which has 60% of its operations in natural gas and 40% in oil, the British corporation will expand its presence in Canada and strengthen its resource base "for decades to come." A number of ARC facilities already operate near Shell's existing Canadian fields. They provide gas to the LNG Canada plant, in which Shell has a 40% stake. LNG from this facility goes mainly to Asian buyers.

If shareholders of both companies, as well as regulators in North America and Europe, approve the deal, it will be finalized in the second half of this year.

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