The Shell logo is displayed in front of a Shell gas station on July 30, 2020 in San Rafael, California. Royal Dutch Shell reported second quarter adjusted earnings of $638 million compared to a net profit of $3.5 billion one year earlier.
Justin Sullivan | Getty Images
Oil giant Royal Dutch Shell on Monday announced a deal to sell the entirety of its Permian Basin assets to ConocoPhillips.
ConocoPhillips is purchasing the West Texas business for $9.5 billion in cash, according to a press release.
The assets span roughly 225,000 net acres with current production about 175,000 barrels per day, the press release said. The sale is set to close in the fourth quarter 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 lower its carbon emissions in the face of a changing climate.
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