Shell nears $9.5 billion deal to sell West Texas oil field assets to ConocoPhillips

Shell nears $9.5 billion deal to sell West Texas oil field assets to ConocoPhillips

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 one year earlier.

Justin Sullivan | Getty Images

Oil giant Royal Dutch Shell is nearing a deal to sell its Permian Basin assets to ConocoPhillips, sources told CNBC’s Brian Sullivan on Monday.

ConocoPhillips is the winning bidder for Shell’s entire acreage position in West Texas in a deal valued at roughly $9.5 billion, the sources said.

The assets span roughly 240,000 acres, according to the sources.

The sale is set to close in the fourth quarter this year, the sources told CNBC.

The deal would mark Shell’s complete withdrawal from onshore production in Texas. Shell will maintain its offshore production in Texas.

The move comes as the oil industry faces increasing pressure to invest in renewable energy and lower its carbon emissions in the face of a changing climate.

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