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January 12, 2022

ExxonMobil to divest shale gas assets in the US

The divestment is expected to raise approximately $200m for the oil firm.

ExxonMobil has reportedly launched the sale of its shale gas assets in the Appalachian basin, Ohio.

The sale of the properties that stretch across 27,000 acres in the basin forms part of the oil and gas firm’s ongoing US asset divestiture strategy, reported Reuters.

According to a marketing document viewed by the news agency, the firm has put 61 wells up for sale, as well as stakes in 274 wells operated by other partner firms.

The 61 wells produced approximately 81 million cubic feet per day equivalent of natural gas in 2021.

A potential sale of the assets could fetch an estimated $200m for the firm. This is based on current natural gas prices and the existing wells’ production, the news agency added, citing a person familiar with the matter.

Exxon spokesperson Sarah Nordin was quoted by Reuters as saying: “ExxonMobil is providing information to third parties that may have an interest in the assets, but no agreement has been reached and no buyer has been identified.”

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The sale of the properties will enable Exxon to focus more on developing its assets in Guyana, offshore Brazil, and the Permian basin shale field in Texas.

ExxonMobil also announced that it has acquired a stake of 49.9% in the Norwegian biofuels company Biojet.

The acquisition is a part of ExxonMobil’s efforts to develop and deploy lower-emission energy solutions.

The company, which established a low carbon solutions business last year, is currently assessing biofuels, carbon capture and storage, and hydrogen projects around the world.

ExxonMobil Fuels and Lubricants Company president Ian Carr said: “The agreement with Biojet AS advances ExxonMobil’s efforts to provide lower-emissions products for the transportation sector.

“Using our access at the Slagen terminal, we can efficiently distribute biofuels in Norway and to countries throughout northwest Europe.”

Earlier this month, ExxonMobil announced that it had made oil discoveries offshore Guyana.

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