Shell is to buy Canadian shale producer ARC Resouces in a $16.4bn deal that the oil major says will boost its production and deliver “value for decades”. The London-listed oil major, which has been under pressure from shareholders to increase output and the level of reserves, will pay for the
Ali Lyon
Monday 27 April 2026 1:51 pm | Updated: Monday 27 April 2026 2:11 pm
Shell is to buy Canadian shale producer ARC Resouces in a $16.4bn deal that the oil major says will boost its production and deliver “value for decades”.
The London-listed oil major, which has been under pressure from shareholders to increase output and the level of reserves, will pay for the deal using 25 per cent cash and 75 per cent shares at a 20 per cent premium to its 30-day average before the deal was announced.
The megadeal is the latest evidence of an industry-wide push from petrochemicals giants to return to their core oil and gas functions, after a years-long pivot toward renewable energy. Shell has promised to ramp up gas production by between four and five per cent by 2030 and increase its oil production by one per cent in an effort to bolster shareholer returns after several years of underperformance.
Shell said the deal would help support its aim to produce 1.4m barrels of oil per day by the end of the decade, combining ARC’s 1.5m net acres of gas fields with Shell’s 440,000 in the Montney region in Canada.
Shell deal ‘unanimously supported’ by both boards
“This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions,” Wael Sawan, Shell’s chief executive, said in a statement, adding that the deal compliments its “existing footprint in Canada and strengthens our resource base for decades to come”.
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The boards of both companies “unanimously supported the transaction”, which is expected to close before the end of the year subject to the approval of Arc shareholders and regulators.
“ARC is combining with a company that has a global portfolio of best-in-class assets,” said ARC president and chief executive, Terry Anderson.
“I’m excited that ARC’s assets and world class people will play an important role in helping Shell to further strengthen Canada’s resource landscape whilst also providing the secure energy that the world needs.”
Shell said the deal would generate double digit returns for the oil major, adding 370,000 barrels of oil per day of production.
Shell’s share price fell by 0.8 per cent in the minutes after the deal was announced.
The oil major’s shares have been carried higher thanks to the war in Iran, with the firm on course to book bumper profit thanks to the higher oil price.
The FTSE 100 firm’s stock is worth 16 per cent more than at the beginning of February, when Donald Trump started sending warships to the Gulf ahead of launching a series of air strikes.
Read more Shell and BP plummet after Trump declares ceasefire with Iran
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