With plans to invest between $3 billion and $4 billion annually in shale through 2025, Royal Dutch Shell sees its entire shale business becoming free cash flow positive this year, having already reached that milestone in the Permian Basin, executives said this week.

The Anglo-Dutch energy company, which is positioning its portfolio for the energy transition, said it is focusing on high-margin tight oil and low-cost gas assets as it targets $2 billion to $3 billion in organic free cash flow for shale in 2025.

“We have been on a significant performance journey, optimizing our portfolio and directing our capital to developing high-margin assets,” said Wael Sawan, incoming upstream director for Shell. “We now have a proven track record of delivery. By 2020, we expect over half of our production to come from liquid-rich assets in Permian, Fox Creek and Argentina.”

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