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 the previous year.
Justin Sullivan | Getty Images
Oil giant Royal Dutch Shell on Monday announced a deal to sell all of its Permian basin assets to ConocoPhillips.
ConocoPhillips buys the West Texas business for $ 9.5 billion in cash, according to a press release.
The assets cover approximately 225,000 net acres with a current production of about 175,000 barrels per day, according to the press release. The sale will close in the fourth quarter of this year.
The deal would mean Shell’s complete withdrawal from land production in Texas. Shell will maintain its offshore production in Texas.
The move comes as the oil industry faces growing pressure to invest in renewable energy and reduce its carbon emissions in the face of a changing climate.
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