Shell Mulling Sale Of Holdings In Largest U.S. Oil Field: Reports

Shell Mulling Sale Of Holdings In Largest US Oil Field Reports

The potential sale could include all of Shell’s 260,000 acres in the Permian Basin, mostly in Texas, as the company RDS.A, +0.77% RDS.B, +1.14% refocuses on existing production elsewhere and transitions to lower-carbon ventures, Reuters reported, citing unnamed people familiar with the matter.

Such a sale could raise as much as $10 billion, CNBC said, also based on an unidentified insider familiar with the talks. The sale was not expected to be imminent.

Shell has stepped up its investment in renewable energy sources and made carbon-reduction pledges. But a Dutch court last month ordered Shell to cut its carbon emissions by a more aggressive 45% by 2030 compared to 2019 levels in a landmark case brought by climate activism groups.

At Shell rival ExxonMobil XOM, -0.92%, powerful shareholders have just pushed three climate-minded board members into seats.

In recent weeks, the historically oil-friendly International Energy Agency surprised markets with a position report saying the world must stop investing in new oil and gas wells in order to hit ambitious climate goals by 2050.

Energy production of all types combined accounts for 72% of global emissions.

U.K.-traded shares are up more than 9% in the year to date. U.S.-traded ADRs are up 15% in the year to date. U.S. oil futures CL00 are up 49% this year to nearly $72 per barrel, more than double their 2020 COVID-19 lockdown low.

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