News

#The Wall Street Journal: Shell to sell Permian assets to ConocoPhillips in deal worth $9.5 billion

Oil prices pull back as Fed’s shift in tone lifts U.S. dollar

Table of Contents

“#The Wall Street Journal: Shell to sell Permian assets to ConocoPhillips in deal worth $9.5 billion”

Move comes as Shell pivots toward renewable energy

Royal Dutch Shell PLC has agreed to sell all of its assets in the Permian basin, the most active U.S. oil field, to ConocoPhillips for around $9.5 billion in cash.

The deal, disclosed by both companies on Monday, comes as Shell
RDS.A,
-2.16%
is attempting 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 companies come under increasing pressure to diversify outside of fossil fuels.

The Wall Street Journal reported earlier Monday that such a transaction was imminent.

Shell said $7 billion of the proceeds will be returned to shareholders, while it will use the remainder to shore up its balance sheet. The European oil giant had acquired the bulk of its Permian assets in 2012 from Chesapeake Energy Corp.
CHK,
-2.21%
for about $1.9 billion.

ConocoPhillips
COP,
-3.14%
said the assets, entirely in Texas, included about 600 miles of oil, natural-gas and water pipelines and other energy infrastructure. It declined to comment further on the deal Monday.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Pfizer, BioNTech say COVID-19 vaccine is safe for children aged 5 to 11.

The Facebook Files: A Wall Street Journal investigation.

Cara Lombardo

,

Collin Eaton

If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.