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Separation tanks are located at the Royal Dutch Shell Plc processing plant in Loving, Texas on August 24, 2018.
Callaghan O’Hare | Bloomberg | Getty Images
Oil giant Royal Dutch Shell on Monday announced an agreement to sell all of its Permian Basin assets to ConocoPhillips.
ConocoPhillips is buying the West Texas business for $ 9.5 billion in cash, according to a press release.
The assets span approximately 225,000 net acres with current production of approximately 175,000 barrels per day, according to the press release. The sale is expected to be finalized in the fourth quarter of this year.
The deal would mark Shell’s complete withdrawal from onshore production in Texas. Shell will maintain its offshore production in Texas.
The move comes as the oil industry faces increasing pressure to invest in renewable energy and reduce its carbon emissions in the face of climate change.
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