Varcoe: Chevron exits Alberta after $8.8B deal with Canadian Natural Resources

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The Calgary-based company agreed to an all-cash transaction to acquire Chevron's 20 per cent stake in the Athabasca Oil Sands Project (AOSP), a development already operated and majority owned by Canadian Natural Resources.

It also picks up Chevron's properties in the Duvernay formation in Alberta, with plans to quickly boost production.

"Both these assets provide significant free cash flow for decades," company president Scott Stauth told analysts on Monday.

"We are going to continue to do what we do -- and that's focus on driving value through continuous improvement, look at ways to reducing costs, look at ways to optimize production."

The acquisition is expected to add about 122,500 barrels of oil equivalent (boe) per day to the company's output next year.

Canadian Natural is already the country's largest petroleum producer, pumping out 1.29 million boe per day during the second quarter, and it continues to grow.

The deal will secure the company's spot in the list of top 12 largest petroleum producers in the world next year, excluding national oil companies, according to data by consultancy Wood Mackenzie.