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Supermajor Mulling Sale of Permian Basin Portfolio; Could Fetch Up to $10B

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   |    Monday,June 14,2021

Shell is considering selling off its Permian Basin portfolio, according to multiple reports.

If a deal is struck, this would only add to the huge upswing in deals seen over the last couple of months. A large swath of them have been focused in the Permian Basin.

It remains to be seen if the company will opt to divest its entire asset base in the Permian (see map below) or just a select portion of it, as the potential sale is in the early stages.

According to sources, Shell's Permian portfolio could fetch a purchase price of up to $10 billion. The company acquired the assets from Chesapeake Energy Corp. back in September 2012 for a purchase price of $1.9 billion.

This move comes shortly after investors amped up pressure on Shell to reduce its carbon emissions and begin increasing investments in renewable energy sources. The supermajor has indicated that by 2025, approximately 25% of its capital budget will be devoted to such projects.

Shell's Permian Assets

Shell currently has 260,000 net acres in the Permian. Current production is just below 200,000 BOEPD.


Shell's assets are in yellow.

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