ExxonMobil sells $1 billion of conventional assets in the Permian Basin

ExxonMobil sells conventional oil fields in the Permian Basin to refocus on shale, following its acquisition of Pioneer Natural Resources.

Share:

ExxonMobil has agreed to sell conventional oil assets in the Permian Basin for around $1 billion.
This transaction is part of a strategy to refocus on shale deposits, which are more profitable and aligned with the company’s priorities following the acquisition of Pioneer Natural Resources.
The fields concerned, mainly based on conventional technologies, are less profitable than the company’s new strategic priorities in the region.
The recent acquisition of Pioneer Natural Resources almost doubles ExxonMobil’s production in the Permian Basin, necessitating a reorganization of its asset portfolio.
By divesting these older oil fields, the company is strengthening its ability to invest in the Permian Basin’s unconventional resources, which are deemed more lucrative.

Strategy to refocus on shale

The refocusing on shale deposits is explained by the higher profitability of these resources compared with conventional fields.
The Permian Basin, renowned for its vast unconventional reserves, becomes the focus of ExxonMobil’s operations in this region.
The sale of conventional assets frees up capital to develop high-potential projects in the shale segments.
The sale process, currently being finalized, includes consultations with potential buyers, aimed at maximizing the value of these assets for the company.
The strategy is to focus investments on areas with the most promising return prospects, in line with evolving energy market conditions.

Impact on the US oil market

This asset disposal illustrates a broader restructuring trend within the US oil industry, where the major players are concentrating on the most profitable segments.
The Permian Basin remains at the heart of this dynamic, with increased competition for shale resources.
By reorganizing their portfolios, the major companies are seeking to optimize their operations in the face of global market uncertainties.
The impact of this sale could be significant, not only for ExxonMobil, but also for the sector as a whole, by consolidating assets around the best-performing fields.
The rationalization movement observed in this region could spread to other parts of the sector, influencing the strategy of other oil companies.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.