date of publication:
Sep 20 2021 21:40 GMT
Update date: September 21, 2021 0:00 GMT
The deal will expand Conoco’s foothold in the Permian Basin, the heart of the US shale oil industry. For Shell, it is another step away from its traditional focus on oil and gas towards a greater reliance on energy production from renewable sources.
Shell said in a statement: “The cash proceeds of this transaction will be used to finance $7 billion in additional dividends to shareholders. The rest of the funds will be used to further strengthen the balance sheet.”
Reuters first reported in June that Shell had offered to sell its assets in the Permian, the shale formation that stretches through Texas and New Mexico and accounts for about 40 percent of US oil production.
Shell owns about 260,000 acres in that basin, mostly in Texas, and its operating and non-operating rigs averaged 193,000 barrels of oil equivalent per day in 2020, or about six percent of its total production that year, according to its website.
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