Exxon Puts Up Permian Assets for Sale
Exxon is looking to sell some conventional oil and gas assets in the Permian, Bloomberg has reported, with the proceeds from the potential sale seen at around $1 billion.
In a written response to the publication’s questions, Exxon said it was “exploring market interest for select conventional assets in West Texas and South East New Mexico,” adding that “This decision is consistent with our strategy to continually evaluate our portfolio.”
Bloomberg also quoted unnamed sources as saying the assets to be divested included wells in the Central Basin of the Permian, where production was not particularly high but it was stable. The divestment was in line with Exxon’s strengthened focus on shale oil and gas development.
The biggest step in this direction that Exxon took recently was the $60-billion takeover of Pioneer Natural Resources, completed earlier this year. The completion of the megadeal significantly bolstered Exxon’s presence in the prolific Permian Basin. This strategic move effectively doubled Exxon’s footprint in the region, solidifying its position as a dominant player in one of the most productive parts of the shale patch.
The acquisition opens to Exxon access to over 1.4 million net acres in the Delaware and Midland basins within the Permian formation. According to the company’s projections, the combined entity is poised for a substantial surge in production to as much as 1.3 million bpd. Looking ahead, Exxon anticipates further growth, with production forecast to reach an impressive 2 million bpd by 2027, underscoring the long-term strategic value of this acquisition.
Meanwhile, Exxon eyes boosting its total oil output to some 4.3 million barrels daily this year, which would be the highest in ten years, Bloomberg noted in its report on the divestment plans for the conventional Permian wells. Pioneer’s acquisition will be a major contributor to this higher output.
