Canadian Natural Resources Limited (CNRL) is set to complete a significant asset swap with Shell Canada, a move expected to boost the company’s oil sands production. The swap, announced on Wednesday, stems from a 2017 agreement between the two companies and will see CNRL exchange 10 per cent of its interest in the Scotford Upgrader and Quest Carbon Capture and Storage facilities for Shell’s remaining 10 per cent working interest in the Athabasca Oil Sands Project (AOSP).

This transaction means that CNRL will own all of the AOSP mines, reserves, and non-producing assets while gaining an 80 per cent interest in the Scotford Upgrader and Quest. The company estimates the deal will increase its production by approximately 31,000 barrels per day. “This transaction further enhances Canadian Natural’s advantage,” said the company in a statement, noting the long-life, no-decline nature of its oil sands assets.

While there is no cash exchanged in the deal, regular closing adjustments will apply, and the transaction is expected to close by the end of the first fiscal quarter, pending regulatory approval.

The swap is expected to support CNRL’s diversified sales strategy, including long-term commitments on the Trans Mountain Expansion pipeline and to the U.S. Gulf Coast.