Kuwait Petroleum Corporation’s overseas upstream arm KUFPEC is shelling out $1.5bn on Canadian shale – the first major move by a Gulf NOC into a shale development.

KUFPEC has agreed to pay Chevron US$1.5bn to take a 30% stake in a new joint venture with the US firm covering the 330,000-acre lease at the Duvernay shale lease in western Canada’s key oil province of Alberta. The bulk of the $1.5bn will be paid up front upon expected deal closure next month with the remainder to be paid against future capital costs. (CONTINUED - 1641 WORDS)