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Shell sells Permian oil and gas assets to ConocoPhillips for $9.5 billion

One of the world’s largest energy producers sold its Permian Basin assets to a Texas-based operator for $9.5 billion.

Royal Dutch Shell announced the deal Sept. 20 to sell its assets in the Delaware sub-basin on the western side of the Permian which spans from southeast New Mexico to West Texas to ConocoPhillips.

The deal also included $7 billion to be distributed to shareholders upon the sale’s closure, expected by the end of 2021.

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Wael Sawan, Shell upstream director said the move was intended to maximize cash distribution for investors rather than increasing production.

He said the sale was part of the company’s strategy to increase returns on investment by driving up the value of its properties in the basin.