Shell Announces $ 9.5 Billion Sale of West Texas Oil Field Assets to ConocoPhillips

Shell Announces $ 9.5 Billion Sale of West Texas Oil Field Assets to ConocoPhillips

The Shell logo is displayed outside a Shell gas station on July 30, 2020 in San Rafael, California. Royal Dutch Shell reported adjusted second quarter earnings of $ 638 million, compared to net income of $ 3.5 billion a year ago.

Justin Sullivan | Getty Images

Oil giant Royal Dutch Shell on Monday announced an agreement to sell all of its Permian Basin assets to ConocoPhillips.

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

The property covers approximately 225,000 net acres, with current production of approximately 175,000 barrels per day, according to the press release. The sale is expected to close in the fourth quarter of 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 at a time when the oil industry faces increasing pressure to invest in renewable energy and reduce its carbon emissions due to climate change.

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