Shell signed an underwriting agreement for the sale of its entire stake of 97.6 million shares in Canadian Natural, the company said in a statement.
Last June, Shell had reported a stake of 8 percent in Canadian Natural.
Shell decided to offload the roughly C$4.1 billion (2.35 billion pounds) stake in Canadian Natural Resources that it acquired as part of a deal to retreat from Canada’s oil sands, people familiar with the situation had told Reuters nearly a year ago.
The deal between the two companies was earlier reported by the Globe and Mail.
The underwriting group includes Goldman Sachs & Co, RBC Capital Markets, Scotiabank and TD Securities.
Reporting by Mekhla Raina in Bengaluru; Editing by Chris Reese and Leslie Adler