Shell sells Canadian oil sands sites for $7.3bn as it reshapes the group

Royal Dutch Shell said it will sell significant parts of its oil sands sites in Canada for $7.3bn (£6bn), as it continues to streamline the group.

The Anglo-Dutch oil giant said it would sell down its share in the Athabasca Oil Sands Project from 60% to 10% to a unit of Canadian Natural Resources, one of the largest independent crude oil and natural gas producers in the world.

Canadian Natural Resources will also take all of Shell's Peace River Complex assets in the area and a number of undeveloped leases in Alberta.

A second deal will see Shell and Canadian Natural Resources jointly acquire Marathon Oil Canada, which holds a 20% interest in the Athabasca project, for $1.25bn each.

The move is part of a divestment plan following Shell's 2015 mega-takeover of gas giant BG for $47bn. Shell told investors after the purchase it planned to sell $30bn of assets around the world to streamline the business.

Shell chief executive Ben van Beurden said: "This announcement is a significant step in re-shaping Shell's portfolio in line with our long-term strategy. The proceeds will accelerate free cash flow and reduce gearing and make a meaningful contribution to Shell's $30bn divestment programme."

Analysts at RBC added: "This is the largest divestment announced to date under Shell's $30bn divestment plan, which now stands at around $20bn."

Also, Shell boss van Beurden's total pay package jumped by 54% last year to €8.6m (£7.5bn) following a rise in payouts under long-term incentive plans, according to the group's annual report.

His total remuneration, which also includes an annual bonus, pension and benefits, increased from €5.6m a year earlier.