Royal Dutch Shell Plc is rumored to be considering exiting the Permian Basin amid pressure to accelerate its energy transition strategy and deepen carbon emission cuts.
The Anglo-Dutch supermajor is reviewing its assets in the Permian Basin for a possible sale, according to a Reuters story citing unnamed sources. Last month, a landmark Dutch court ruling ordered Shell to speed up its plans to cut greenhouse gas emissions despite plans outlined earlier this year to become a net-zero carbon emissions company by 2050.
Shell’s Permian Basin position could be worth over $10 billion, according to the sources in the Reuter report.
The sources added that the sale could be for all or a portion of Shell’s assets and that there was no guarantee a deal would be struck.
According to Enverus, the holdings cover 240,000 net acres on the Texas side of the Delaware Basin in the Permian and delivered 2020 net production of 197,000 boe/d, off 23% from 2019 and equivalent to 6% of Shell’s total.
Oil firms Equinor and Rosneft expect to extract some 250 million barrels of oil and 23 billion cubic meters of gas during the first part of the development of the Severo-Komsomolskoye oilfield in Russia, Equinor said on Dec. 23.
Repsol will still hold a 51% stake in the block after the deal.
Chevron said on Dec. 24 it expects Saudi-Kuwaiti Neutral Zone's Wafra oilfield to return to full production within 12 months.