This group brings together those who are interested in topics around oil and gas exploration, drilling, refining, and processing.

Tariq Siddiqui's picture
COO Upstream EP Advisors LLC

Oil & Energy | Business Development | Capital Projects | Offshore Wind -  Proven leader in offshore development and operations, with 25+ years’ expertise in managing business through cycles...

  • Member since 2021
  • 103 items added with 51,761 views
  • Sep 21, 2021 8:42 pm GMT
  • 386 views

Anglo-Dutch oil supermajor Shell is set to leave the Permian with a divestment worth close to $10 billion. The company said it will sell its assets in the shale play to ConocoPhillips for a total price of $9.5 billion.

WHY IT HAS HAPPENED

  • The decision to exit the Permian has a lot to do with a Dutch court ruling from earlier this year that ordered Shell to reduce its carbon footprint considerably.
  • It reflects Shells focus on "value" over "volumes" as well as disciplined stewardship of capital. According to Shell "a very compelling value proposition."
  • Divestments immediately emerged as the most realistic way for Shell to comply with the court order, 

WHAT ARE THE IMPLICATIONS?

  • The deal won't reduce emissions, as someone else (ConocoPhillips) will be operation the field.
  • This will make COP one of the largest player in permian.
  • Shell intends to use the proceeds  for returning it to shareholder and repairng balance sheet.

BOTTOMLINE

Despite the increasing pressure on oil & gas industry to reduce emissions and subsequent divestment of emission intensive assets, fewer companies are putting money back in renewables, biofuels, CCS; the stated pathways to decarbonize.

 

Tariq Siddiqui's picture
Thank Tariq for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »