(Adds analyst comment, context on Shell Canada operations)
By Nia Williams
CALGARY, Alberta, Oct 20 (Reuters) - Royal Dutch Shell Plc said on Thursday it is selling $1.03 billion worth ofnon-core oil and gas properties in western Canada to TourmalineOil Corp, the latest example of the global oil majortrimming its operations in the region.
Shell said it will sell 206,000 acres (83,365 hectares) ofdeveloped and undeveloped lands, amounting to production ofabout 24,850 barrels of oil equivalent per day, to Calgary-basedTourmaline.
The assets include 61,000 acres (24,685 hectares) in theGundy area in northeast British Columbia and 145,000 acres(58,679 hectares) in the Deep Basin area of west-centralAlberta.
Shell is undergoing a $30 billion asset divestment programglobally and has already pulled back from some capitalcommitments in western Canada.
In July, the company delayed a decision on whether to builda liquefied natural gas export terminal in British Columbia,citing global industry challenges.
In October 2015, it halted its Carmon Creek oil sandsproject in northern Alberta because of the lack ofinfrastructure to move Canadian crude to market.
Shell Upstream Director Andy Brown said the company wasselling to Tourmaline because the assets did not fit intoShell's near-term development plans.
Robert Fitzmartyn, director of institutional research at GMPFirstEnergy in Calgary, said the divestitures and delays werenot a good sign.
"With regards to a long-term oil and gas producer in Canada,the early signs of somebody pulling out cannot be a positivecommentary for the political environment," Fitzmartyn said.
The left-leaning NDP government in Alberta has unsettledmany energy companies by raising corporate taxes and introducingcarbon pricing. Elsewhere in Canada, there is staunch resistanceto building new energy infrastructure like pipelines.
Shell still holds nearly 650,000 net acres (263,045hectares) in the Montney and Duvernay shale plays and is a majoroil sands producer in northern Alberta.
The Montney is considered one of Canada's best shale playsand was expected to provide most of the gas for Canada's westcoast LNG industry. However, the LNG boom has failed tomaterialize given regulatory delays in approving exportterminals and environmental opposition.
Shell spokesman Cameron Yost said after the sale the companywould still have ample production from its Groundbirch acreageto supply the LNG terminal should the project go forward.
The deal consists of $758 million in cash and Tourmalineshares valued at $279 million, and is expected to close in thefourth quarter of 2016.
(Additional reporting by Sangameswaran S in Bengaluru; Editingby Maju Samuel and Will Dunham)
