British oil major Shell has announced a $16.4 billion agreement to acquire Canadian energy company ARC Resources.
The transaction, which marks a significant expansion in North America, is set to enhance Shell's operations in the Montney shale basin, a key region for unconventional oil and gas production.
The acquisition is likely to have a ripple effect across the energy sector, particularly in the Canadian oil and gas space.
ARC Resources is described as a top-quartile low-carbon intensity producer, aligning with Shell's broader strategy to transition toward more sustainable energy sources while maintaining its core hydrocarbon operations.
The Montney basin, where ARC operates, is a major unconventional resource area in British Columbia and Alberta.
Shell's move into this region is expected to strengthen its existing footprint in Canada and provide access to high-quality, low-cost production.