US-based ConocoPhillips is considering the sale of its assets worth over $1bn, in the Permian basin, reported Bloomberg, citing people with knowledge of the matter.

The company is working with an undisclosed advisor to launch an auction for these assets.

The sources said that the firm is inviting potential suitors to its data room to evaluate information.

This sale will reduce the firm’s assets in the Delaware region, within the Permian basin of West Texas and New Mexico.

The move comes after the firm became one of the basin’s biggest producers, with the completion of a $9.5bn acquisition of Shell’s Permian operations, in December 2021.

Following the deal with Shell, ConocoPhillips increased its target to raise between $4bn and $5bn by 2023, from the earlier target of $2bn to $5bn, through the sale of its assets.

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The divestments, which are planned to be sourced primarily from the Permian basin, forms part of the firm’s efforts for high-grading its portfolio.

As part of this strategy, the company reported a major sale at the end January 2022 when Maverick Natural Resources agreed to buy ConocoPhillips’ producing properties, in the Permian basin, for $440m.

The latest move by ConocoPhillips comes as global oil and gas companies seek to reduce their debt by selling non-core assets, to benefit from surging oil prices.

Last week, Reuters reported that Crescent Point Energy is considering the sale of some of its assets, located in the Canadian provinces of Alberta and Saskatchewan.

Oil prices reached their highest today in over seven years due to concerns over Russia’s possible invasion on Ukraine, which could lead to sanctions by the US and Europe on Moscow, reported Reuters.

The sanctions could possibly tighten the oil market.

Brent crude futures prices reached $95.61 a barrel by 05:06 GMT, an increase of $1.17, or 1.2%, after it hit an earlier peak of $96.16.

U.S. West Texas Intermediate (WTI) crude settled at $94.51 a barrel, an increase of $1.41, or 1.5% after reaching a session high of $94.94.