ConocoPhillips Buys Shell’s Permian Basin Operations for $9.5 Billion
10.04.2021 - NEWS

October 4, 2021 [TheTexan.News] – Nearly $10 billion has exchanged hands between oil and gas giants after Shell sold its Permian Basin operations to Houston’s ConocoPhillips.

 

Shell, a subsidiary of the Royal Dutch Shell based in the Netherlands, hands roughly 225,000 acres of their property over to ConocoPhillips.

“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Shell’s upstream director in a press release.

“This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”

In its release, Shell trumpeted its Powering Progress initiative, a strategy to reach net-zero carbon emissions by reducing the use of fossil fuels. It’s one part of a broad effort by some oil and gas titans to head off environmentalists’ calls to eliminate fossil fuel use.

ConocoPhillips CEO Ryan Lance said of the acquisition, “We were presented with a unique opportunity to add premium assets at a value that meets our strict cost of supply framework and brings financial and operational metrics that are highly accretive to our multi-year plan.”

The Houston-based company made another multi-billion purchase this year, buying Concho Resources, a Permian Basin drilling company, in January for $9.7 billion.

The oil and gas industry is in the midst of a rebound from a disastrous 2020 caused by the pandemic and government shutdowns suppressing typical demand for its products.

Texas produces half of the nation’s crude oil and a quarter of its natural gas. Last April, crude oil prices plunged to record lows, reaching as low as -$40 per barrel (bbl).

Since then, oil prices have recovered past their pre-pandemic levels and now sit in the low $70 per bbl.

Click Here to Access Today a 7,000 Tank Terminal Database With a Pro Trial

7,000 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Recently Updated Tank Storage Facilities in TankTerminals.com – Week 41 (2021)
10.13.2021 - NEWS
  Sinopec, Enterprise, Puma, Phillips 66, Marathon, Buckeye, NuStar, Magellan, Esso, CEPSA, ... Read More
BP Investing $269M in Cherry Point Refinery to Increase Efficiency, Lower Carbon Emissions
10.11.2021 - NEWS
October 11, 2021 [NWI] – BP plans to invest $269 million in its Cherry Park Refinery in Was... Read More
New Terminals to Boost Storage Capacity
10.11.2021 - NEWS
October 11, 2021 [Tribune.com] – LNG import terminals, to be built in 12-15 months, will he... Read More
Oil Gains as Energy Demand Rises; WTI Tops $80
10.11.2021 - NEWS
October 11, 2021 [msn.com] – Oil prices rose on Monday, extending multiweek gains, amid sup... Read More