Chevron Corp. is planning a big drilling program within the Duvernay shale formation, marking a vote of confidence in Canada’s vitality business in a yr when it joined different majors in promoting property there.

The preliminary growth within the East Kaybob part of the formation will embody about 55,00zero acres (22,00zero hectares), the San Ramon, California-based firm mentioned Monday. Chevron has a internet 70% working curiosity in about 330,00zero acres within the Duvernay.

The drilling program might increase morale within the Canadian vitality business, which has seen vitality majors together with Royal Dutch Shell Plc, Marathon Oil Corp. and ConocoPhillips divest billions of of property in Alberta’s oil sands. Chevron itself offered its gasoline stations and refinery in British Columbia in a $1.1-billion deal earlier this yr.

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Chevron’s operations within the Duvernay, a liquids-rich formation in west-central Alberta, will use long-term infrastructure agreements with Pembina Pipeline Corp. and Keyera Corp. Calgary-based Pembina expects a capital value of C$290 million ($228 million) for its portion of the challenge, with an in-service date of mid- to late-2019.

The resolution follows a three-year appraisal program, in keeping with the corporate assertion.

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Chevron shares rose 1.eight% to $117.04 Monday in New York. The inventory is little modified this yr.

Source: www.worldoil.com

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