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August 29, 2022

Exxon agrees to divest Arkansas shale gas assets to Flywheel Energy

The sale includes around 5,000 natural gas wells as well as related pipeline and processing properties.

Exxon Mobil has agreed to sell its oil and gas producer natural gas properties in Arkansas to Flywheel Energy , an Exxon spokesperson told Reuters.

The agreement has been signed by XTO Energy , a subsidiary of Exxon , with Kayne Anderson Private Energy Income Funds-backed Flywheel.

The transaction includes around 5,000 natural gas wells including around 4,100 non-operated and 850 operated, as well as related pipeline and processing properties that cover an area of around 381,000 acres.

The sale of Fayetteville Shale assets forms part of the US energy company’s efforts to focus on more lucrative prospects.

This will bring the total proceeds raised by Exxon by selling non-core properties to $15bn, according to the news agency.

Exxon spokesperson Julie King was quoted by Reuters as saying: “The sale advances Exxon Mobil ’s strategy to focus investments on advantaged assets.”

Subject to regulatory and other approvals, the deal is slated to close before the end of October 2022.

Exxon unveiled plans to sell its Fayetteville and other shale assets outside of the Permian Basin, US in 2020.

Subsequently, the firm resumed its divestment programme in 2021 following the recovery of energy prices from the slump caused by the Covid 19 pandemic.

In a separate development, Norway’s Equinor is looking to offload a 28% stake in Statfjord field, which straddles the Norwegian and British continental shelves, to raise up to $500m, reported Reuters citing a presentation.

The firm is also considering sale of minority stakes in the connected fields Statfjord North, Statfjord East and Sygna.

To advise on the potential sale, the Norwegian firm has hired US-based investment bank Houlihan Lokey , a source familiar with the matter told the news agency.

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