(Bloomberg) -- ConocoPhillips agreed to acquire Royal Dutch Shell Plc’s Permian Basin assets for $9.5 billion in cash, accelerating the consolidation of the largest U.S. oil patch.Most Read from BloombergThe Global Housing Market Is Broken, and It’s Dividing Entire CountriesMerkel’s Legacy Comes to Life on Berlin’s ‘Arab Street’Is There Room for E-Scooters in New York City?Amazon, Microsoft Swoop In on $24 Billion India Farm-Data TrovePalm Oil Giant’s Industry-Beating ESG Score Hides Razed Fores
HOUSTON (September 20, 2021) − Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals. "After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very
The deal would expand Conoco's footprint in the Permian Basin, the heart of the U.S. shale industry. For Shell, it is a further step away from its traditional focus on oil and gas toward greater reliance on renewable energy production. "The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet," Shell said in a statement.