Royal Dutch Shell Plc agrees to sell off of all its assets in the Permian basin to ConocoPhillips for $9.5 billion, according to a report by The Wall Street Journal on Monday.
- The deal comes after Shell is trying to cut its carbon emissions and invest more in renewable energy. The sale is one of the largest recent transactions in the shale patch as large oil firms are under scrutiny to diversify outside of fossil fuels.
- Shell stated that $7 billion of the proceeds will be returned to shareholders, while it will use the remainder to repair its balance sheet. The European oil giant had bought a significant portion of its Permian assets in 2012 from Chesapeake Energy Corp. for nearly $1.9 billion.
- ConocoPhillips stated that the assets in Texas included around 600 miles of oil, natural gas, water pipelines, and other energy infrastructure.
The deal follows a series of corporate acquisitions earlier this year by oil producers in the Permian Basin. RDSA down -2.16%, COP down -3.14%.