Royal Dutch Shell on Monday said it would sell its assets in the Permian Basin to ConocoPhillips for $9.5 billion in cash, marking the Anglo-Dutch company’s exit from the US largest oilfield as it shifted focus to low-carbon energy. It also marks ConocoPhillips’ second major acquisition of Permian shale assets in a year.
According to ConocoPhillips, the acquisition covers around 225,000 net acres and more than 600 miles of associated infrastructure. This will add to the company’s existing portfolio of 750,000 net acres in the region. To help finance the deal, ConocoPhillips will raise its divestment targets by 2023 from $2 billion-$3 billion to $4 billion-$5 billion.
After the sale, Shell’s assets in the US will be almost entirely located in the offshore Gulf of Mexico. The company sold its gas assets in the Appalachian region in 2020. However, Shell will continue investing in the US, especially in the US Gulf, as well as renewables and petrochemicals. The US is expected to account for one-third of Shell’s global spending.
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Published on September 21, 2021 10:12 AM (GMT+8)Last Updated on September 21, 2021 10:12 AM (GMT+8)
