Royal Dutch Shell’s latest announcement has set headlines on fire today with news it will sell its Permian assets to ConocoPhillips for $9.5 billion in the basin’s latest ownership exchange. Reese Energy Consulting today is studying the oil-and-gas goody bag that will expand Conoco’s Permian presence by 225,000 net acres and add 175 MBPD in production, 600 miles of oil, gas, and water pipe, and other infrastructure to the company’s already sizeable position. The energy major this year has been spillin’ the billions on Permian grabs that began in January when it completed the $13.3 billion purchase of Concho Resources. That deal netted Conoco 550,000 top-tier acres in the Midland and Delaware. As for Shell, scrutiny of its emissions-reduction plan by investors piqued in June after losing a Netherlands’ court battle that obligates Shell to reduce its global carbon footprint 45% by 2030. Shell in August officially put its shallow water and onshore Nigeria operations on the market citing the assets no longer fit its shareholder-driven ESG strategy. Will be interesting to see what goes next.
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