Shell will sell their Sarnia and Scotford Refineries and 10% Oilsands share to CNRL for approximately $10 bn. Chevron will also sell their 20.% share to CNRL.
Not sure if there will be any layoffs
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Scotford survived the chopping block and will be one of six integrated refinery and chemicals park globally. Sarnia refinery not so lucky, will be closed or turned into a terminal.
Shell Sarnia is not sold and is no longer for sale.
Chem plant is to be included in Sarnia sale
Sale announcement later today
Parkland
CNRL
No layoffs yet out West, but I'm betting there will be soon. They company is extremely top heavy in Mgmt etc. Doesn't make sense, IMO, to come in and lay off immediately, CnRL has had the Upgrader for 2 + yrs. I'd bet those layoffs and consolidations will be coming soon, esp with COVID and the state of the economy
No there will be no base salary cuts. When they took over Albian, they did not cut any salaries, even though the horizon mine had lower salaries. But you will not get raises anymore until your compensation is aligned with the rest of the company.
How would this work given the refinery operators are union and a sale to CNRL would likely come with a substantial wage reduction. I question how everything would be negotiated. Upgrader and salary staff would take a pay cut but refinery operators wouldn’t?
Don’t know about the cost figure, but I can definitely see this happening. I know from a very senior member of the Canada Mfg team that there is an outline agreement already in place... not sure how Chem plant will be treated, but refinery and Upgrader are gone.
The Globe and Mail newspaper is the most prestigious and respected news source in Canada and I would say on par with The New York Times. They wouldn’t print a frivolous story. Shell is desperate to get rid of refineries at any cost as long as they negotiate a reasonable long term supply agreement to keep their gas stations in business. This deal will be consummated soon!
I can hardly believe CNRL will pay $ 10 bn for a 70 yrs old refinery and 10% upgrader. Their latest oil acquisition was Devon, 138,000 bbl/d for $3.8 bn and financial condition was much better than what we are now
Running away from fake news fake news
Pretty much. But don't forget about LNG Canada. Although they don't a 100% of it, they are still the operating partner.
Shell will exit Canada if this deal is finalized.
I saw this in the globe and mail last weekend. CNRL has been discussing with their bankers. Although Scotford is a money maker, Shell may want to sell the asset as they are only 10% owner of the Upgrader and they could offload Sarnia at the same time. CNRL has long term ambitions in Canada so might be a good deal for them.
Any word on the chemicals plant?
I haven't heard about this in the news. But probably no layoffs. There were no layoffs when Albian was sold to Cnrl.