Shell has agreed to buy Canadian shale producer ARC Resources for $16.4bn, marking a dramatic reversal five years after the UK energy major sold off its North American shale business. The deal values Calgary-based ARC at a 20 per cent premium to its recent share price, with Shell paying $13.6bn — three-quarters in shares — and assuming $2.8bn in debt.

The acquisition will add about 370,000 barrels of oil and gas to Shell's daily production, providing a significant growth boost at a time when investors have questioned the longevity of the UK company's reserves. In 2021, Shell sold its Permian Basin shale business in Texas to ConocoPhillips for $9.5bn, making this return to North American shale a notable strategic pivot.

Wael Sawan, Shell's chief executive, said ARC would strengthen the company's "resource base for decades to come." The deal signals Shell's renewed commitment to fossil fuel growth despite broader industry shifts toward cleaner energy.