Chevron Corporation’s indirect, wholly-owned subsidiary, Chevron Canada Limited, has reached agreement to sell a 30 percent interest in its Duvernay shale play to Kuwait Foreign Petroleum Exploration Company's wholly-owned subsidiary, KUFPEC Canada Inc., for $1.5 billion. The total purchase price includes cash paid at closing as well as a carry of a portion of Chevron Canada's share of the joint venture's future capital costs. The Duvernay is located in west-central Alberta, and is believed to be among the most promising shale opportunities in North America.

The agreement creates a partnership for appraisal and development of liquids-rich shale resources in approximately 330,000 net acres in the Kaybob area of the Duvernay.

'This sale demonstrates our focus on strategically managing our portfolio to maximize the value of our global upstream businesses and is consistent with our partnership strategy,' said Jay Johnson, senior vice president, Upstream, Chevron Corporation. 'The transaction provides us an expanded relationship with a valued partner. It also recognizes the outstanding asset base we have assembled.'

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