Kuwait Buys Into The Duvernay -- October 6, 2014

Reuters/Rigzone is reporting:

Chevron Corp said it would sell a 30 percent stake in its Duvernay shale properties in Canada to Kuwait Foreign Petroleum Exploration Co for $1.5 billion.

Chevron's Canadian subsidiary has exploration leases for about 330,000 net acres in the Duvernay shale formation. 

The area is located about 124 miles northwest of Edmonton, Alberta.

The deal also creates a partnership for appraisal and development of liquids-rich shale resources in the Kaybob area of the Duvernay, Chevron said.

Chevron Canada will remain the operator and will hold a 70 percent interest in the partnership following the deal close, expected in November. The deal price includes a portion of Chevron Canada's share of future capital costs for the joint venture.

Duvernay is widely viewed as one of North America's most exciting shale fields. Chevron Canada boosted its holdings in the field in August 2013, buying 67,900 net acres from Alta Energy Luxembourg SARL.

Many, many story lines. An obvious one. I may come back to it later, but will let folks think about it.