On Monday, energy company Royal Dutch Shell, announced it was selling all of its property and assets in the Permian Basin to ConocoPhillips. The $9.5 billion sale comes as the oil industry faces scrutiny from congress around its role in the climate crisis and as West Texas continues to recover from a historic oil bust.
Shell is selling approximately 225,000 acres that produce around 175,000 barrels of oil a day as well as hundreds of miles of pipelines to the Texas-based ConocoPhillips. According to a press release from Shell, the decision to sell its holdings in West Texas continues the company’s focus on “value over volumes” and “disciplined stewardship.”
For ConocoPhillips on the other hand, this move continues its spending spree to expand its operations in the Permian, which is the most prolific oilfield in America. Last October, the company announced it was acquiring the Midland-based Concho Resources in a deal that came out to over $9 billion as well.
According to Shell’s press release, the majority of their Midland-based employees will be offered positions by ConocoPhillips once the deal is finalized.