ExxonMobil seeks to sell conventional Permian assets for US$1 billion

EXXONMOBIL is looking to sell a package of conventional oil assets in the Permian Basin as the company focuses on growing shale production after buying Pioneer Natural Resources earlier this year.

The package includes older wells in the Permian’s Central Basin that produce small but stable amounts of oil, according to sources familiar with the matter who declined to be named because sale negotiations are private. It could fetch about US$1 billion but is highly dependent on oil prices, they said. The value of deals in the oil and gas sector has doubled to US$210 billion this year, according to data compiled by Bloomberg.

ExxonMobil is “exploring market interest for select conventional assets in West Texas and South East New Mexico”, the company said. “This decision is consistent with our strategy to continually evaluate our portfolio.”

Operations will continue “as normal throughout the marketing process”, ExxonMobil said. The oil giant’s global production is expected to reach 4.3 million barrels a day this year, the highest in more than a decade, after completing the US$60 billion purchase of Pioneer in May. BLOOMBERG