Royal Dutch Shell is about to exit U.S biggest oilfield in a $9.5 billion deal as the industry faces pressure to lower emissions from fossil fuels.
The oil and gas firm that recently transformed into a full fledged energy outfit, plans to sell its assets in the Permian basin to ConocoPhillips for $9.5 billion in cash.
The field is the most active oil field in the U.S.
Located in the western Texas and southeastern New Mexico, North America, it sits on a 86,000 sq mi (220,000 km2) field- Shell had bought it off Chesapeake Energy nine years ago, expanding its production to about 200,000 barrels a day.
The Permian basin yielded 4.7 million barrels a day in August — more than 40 percent of total American oil output and a nearly 400,000-barrel-a-day increase from January.
Both Shell and ConocoPhilips confirmed the deal on Monday.
The company recently sold its stakes in offshore oil and gas fields in Malaysia and the Philippines.
Its American operations include offshore production in the Gulf of Mexico alongside refineries.
The Dutch company recently set a target to start producing low-carbon jet fuel at scale by 2025- to produce 2 million tonnes of sustainable aviation fuel, SAF by 2025 in an attempt to encourage the world’s airlines to reduce greenhouse gas emissions.