The British giant Shell has announced the acquisition of Canadian oil and gas company ARC Resources. This colossal deal, valued at $16.4 billion including debt and primarily paid for with shares, is the largest acquisition by Shell since 2015, when gas giant BG was purchased, reports Reuters.
British corporation Shell has officially announced the acquisition of Canadian company ARC Resources, which specializes in oil and natural gas extraction. According to Reuters, this deal, valued at $16.4 billion including debt obligations and primarily paid for with shares, marks the most significant event for Shell since the purchase of gas giant BG in 2015.
Increase in Production and Strategic Growth
This acquisition will significantly boost Shell's production capacity. The company's daily output will increase by 370,000 barrels of oil equivalent, which is a substantial addition to the current 2.8 million barrels.
Experts and analysts at Shell have long pointed out the urgent need to seek new assets. This is due to the gradual depletion of existing fields, which required strategic expansion.
Strengthening Positions in Canada
Shell emphasized that the purchase of ARC, whose operations are 60% related to natural gas and 40% to oil, will allow the British corporation to significantly expand its presence in Canada. This will strengthen its resource base for decades to come, ensuring long-term stability.
Many of ARC's operations are already located in close proximity to Shell's existing Canadian fields. They play a key role in supplying gas to the LNG Canada plant, where Shell owns 40% of the shares, and the liquefied natural gas from this facility is primarily supplied to Asian consumers.
