ConocoPhillips has acquired Permian assets in the US from Shell Enterprises, a unit of Royal Dutch Shell, for $9.5bn.
The transaction involved Shell selling 225,000 net acres and producing properties in Texas, along with 175,000 barrels equivalent per day.
It also included more than 600 miles of crude gas and water pipelines and infrastructure. The deal was signed in September 2021.
According to estimations, the assets could produce approximately 200 million barrels oil equivalent per day (MMBD) in 2022.
ConocoPhillips chairman and CEO Ryan Lance said: “This deal was justified on three key merits: it meets our rigorous cost of supply framework, we see a way to drive efficiencies from the assets, and the transaction makes our ten-year plan better.
“We believe the addition of these high-quality assets improves our underlying business drivers, expands our cash from operations, enhances our ability to deliver higher returns on and of capital, and lowers our average GHG intensity.
“The completion of this acquisition caps off an exceptional year and significantly strengthens our company as we head into 2022.”
Proceeds from the sale will be used by Shell to fund $7bn worth of shareholder distributions, while the remainder will be used to strengthen the balance sheet.
In September 2021, ConocoPhillips launched the sale of its conventional oil and gas properties in the US to raise approximately $500m.
The assets for sale included its lower-value oil and gas producing properties in the Central Basin Platform (CBP) and Northern Shelf formations, covering West Texas and New Mexico.