Canadian Natural in talks with parties on royalty land sale -sources

Fri Oct 30, 2015 3:42pm EDT
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By John Tilak and Euan Rocha

TORONTO Oct 30 (Reuters) - Canadian Natural Resources is exploring options for its royalty assets and has held discussions with some pension plans and strategic buyers, according to three sources familiar with the situation.

The company has engaged with the Canada Pension Plan Investment Board, Ontario Teachers' Pension Plan and PrairieSky Royalty Ltd, said the sources, who spoke on condition of anonymity as the matter is not public.

The move comes about four months after Cenovus Energy Inc agreed to sell its royalty lands to Ontario Teachers' for C$3.3 billion and more than a year after Canada's largest natural gas producer Encana spun off its royalty assets though PrairieSky.

Canadian Natural, PrairieSky, CPPIB and Teachers were not immediately reachable for comment.

(Reporting by John Tilak and Euan Rocha; Editing by Chizu Nomiyama)