Royal Dutch Shell Plc is rumored to be considering exiting the Permian Basin amid pressure to accelerate its energy transition strategy and deepen carbon emission cuts.
The Anglo-Dutch supermajor is reviewing its assets in the Permian Basin for a possible sale, according to a Reuters story citing unnamed sources. Last month, a landmark Dutch court ruling ordered Shell to speed up its plans to cut greenhouse gas emissions despite plans outlined earlier this year to become a net-zero carbon emissions company by 2050.
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Shell’s Potential Permian Basin Exit Seen as Bellwether for Shale Demand
Shell’s Permian Basin position could be worth over $10 billion, according to the sources in the Reuter report.
The sources added that the sale could be for all or a portion of Shell’s assets and that there was no guarantee a deal would be struck.
According to Enverus, the holdings cover 240,000 net acres on the Texas side of the Delaware Basin in the Permian and delivered 2020 net production of 197,000 boe/d, off 23% from 2019 and equivalent to 6% of Shell’s total.
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