Oil giant Shell to buy Canada’s ARC Resources for $16.4 billion in push to boost output

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British oil major Shell

on Monday said it agreed a deal to buy Canadian energy company ARC Resources in an output-boosting deal valued at $16.4 billion.

The transaction will add roughly 370,000 barrels of oil equivalent per day to Shell’s portfolio and is designed to increase the London-listed firm’s long-term oil and gas production.

Shell CEO Wael Sawan described ARC Resources, which is focused on the Montney shale basin in British Columbia and Alberta, Canada, as “a high-quality, low-cost and top quartile low carbon intensity producer” that will strengthen the firm’s resource base for decades.