8 C
London
HomeBusinessFinanceShell announces $9.5 billion sale of West Texas oil field assets to...

Shell announces $9.5 billion sale of West Texas oil field assets to ConocoPhillips

Separator tanks stand at the Royal Dutch Shell Plc processing facility in Loving, Texas, Aug. 24, 2018.

Callaghan O’Hare | Bloomberg | Getty Images

Oil giant Royal Dutch Shell on Monday announced a deal to sell the entirety of its Permian Basin assets to ConocoPhillips.

ConocoPhillips is purchasing the West Texas business for $9.5 billion in cash, according to a press release.

The assets span roughly 225,000 net acres with current production about 175,000 barrels per day, the press release said. The sale is set to close in the fourth quarter this year.

The deal would mark Shell’s complete withdrawal from onshore production in Texas. Shell will maintain its offshore production in Texas.

The move comes as the oil industry faces increasing pressure to invest in renewable energy and lower its carbon emissions in the face of a changing climate.

Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now

Stay Connected
16,985FansLike
2,458FollowersFollow
spot_img
Must Read
You might also like

LEAVE A REPLY

Please enter your comment!
Please enter your name here