Exxon Mobil Corp. is looking to sell a package of conventional oil assets in the Permian Basin as the company focuses on increasing shale oil production following its acquisition of Pioneer Natural Resources Co. earlier this year.
The package includes older oil wells in the Permian Central Basin that produce small but steady amounts of oil, say people familiar with the matter who asked not to be identified because the sale negotiations are confidential. The package could fetch about $1 billion but is highly dependent on oil prices, they say. The value of deals in the oil and gas sector has doubled this year to $210 billion, according to data compiled by Bloomberg.
Exxon is “assessing market interest in select conventional assets in West Texas and southeastern New Mexico,” the company said in a statement in response to questions from Bloomberg News. “This decision is consistent with our strategy to continually evaluate our portfolio.”
Exxon said operations would continue “as usual throughout the commercialization process.” The oil giant’s global production is expected to reach 4.3 million barrels per day this year, the highest in more than a decade, after completing its $60 billion purchase of Pioneer in May.
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