ExxonMobil has signed a deal to sell operated and non-operated Barnett Shale gas assets, in Texas, to subsidiaries of BKV Corporation for $750m.
As per the terms of the deal, BKV’s subsidiaries will purchase the natural gas upstream and associated midstream infrastructure in the Barnett Shale region of North Texas from ExxonMobil’s subsidiaries, XTO Energy, and Barnett Gathering.
The upstream assets being divested include approximately 160,000 total net acres primarily in the Tarrant, Johnson, and Parker counties, as well as additional smaller positions in the Jack, Wise, Denton, Ellis, Erath, and Hood counties.
The sale also includes nearly 750 miles of gathering pipelines, and compression and processing midstream infrastructure.
The transaction includes additional payments contingent on future natural gas prices.
Subject to customary closing terms and conditions, the transaction is scheduled to close in the second quarter of 2022.
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ExxonMobil Upstream Company president Liam Mallon said: “We are focused on delivering the most competitive returns to our shareholders by developing opportunities with the lowest cost of supply, and further strengthening our industry-leading upstream position.
“Our subsidiaries have operated in the Barnett Shale safely and responsibly for nearly two decades, and we are encouraged by BKV’s plans to develop the resource in line with its stated pathway to net-zero greenhouse gas emissions by 2025.”
In 2020, ExxonMobil excluded the Barnett Shale gas assets from its development plan.
Upon completion of the deal, all employees associated with XTO Energy and Barnett Gathering will receive full employment offers with BKV.
Earlier this month, ExxonMobil announced that it signed a deal with Romgaz to sell its Romanian upstream unit for more than $1bn.