Royal Dutch Shell is reportedly considering the sale of its shale assets in Texas, US, in an effort to reduce carbon emissions by stopping the use of fossil fuels.
The assets being considered for sale in the largest oil field in the US could be worth more than $10bn, reported Reuters citing undisclosed sources familiar with the matter.
Reportedly, Shell is mulling the divestiture of either part of the assets or 100% of its position in the Permian Basin, which is located predominantly in Texas.
These assets accounted for approximately 6% of Shell’s total oil and gas production in 2020.
The news agency also said that the possibility of a deal materialising for the Shell assets is still uncertain. Shell did not give any official confirmation on the news.
In the Permian Basin, Shell’s operations span from Midland, Texas, to the south-eastern border of New Mexico state.
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It operates 260,000 acres in the Delaware Basin with a focus on the Wolfcamp, Avalon, and Bone Springs formations.
The company reported 193,000 barrels of oil equivalent per day (boed) production from its Permian Basin assets in 2020.
The firm has been facing increasing pressure from investors to boost profits and reduce carbon emissions.
As part of the energy transition plan, the Anglo-Dutch oil major is focusing on reducing its oil and gas output while increasing investment in renewables, hydrogen and low-carbon technologies.
Originally, the firm aimed to reduce the carbon emissions at its operations by at least 6% by 2023, 20% by 2030, 45% by 2035 and 100% by 2050 compared with 2016 levels.
However, last month reports emerged that Shell was ordered by a Dutch court to strengthen its carbon emissions targets by 45% by the end of 2030 compared to the 2019 level.
Recently, Shell also signed an agreement to offload its Mobile refinery in Alabama, US, to speciality refiner Vertex Energy.