ExxonMobil To Sell Oil And Gas Assets In The Permian Basin

Yolowire 28-Aug-2024 10:56 AM

U.S. oil giant %ExxonMobil (NYSE:XOM) is planning to sell some of its oil and gas assets in the Permian Basin of Texas in hopes of raising $1 billion U.S.

Website OilPrice.com is reporting that ExxonMobil plans to offload some of its conventional assets in West Texas and New Mexico following a review of its oil and gas portfolio.

A similar report from Bloomberg news states that ExxonMobil is planning to divest some oil wells in the Permian Basin where production is not overly high.

The divestment comes as ExxonMobil moves to focus more on shale %Oil and natural gas development in the U.S.

The sale also comes after ExxonMobil recently spent $60 billion U.S. to acquire rival Pioneer Natural Resources.

The Pioneer purchase significantly increases ExxonMobil's presence in the Permian Basin, basically doubling the company’s footprint in the oil-rich region of the southern U.S. to more than 1.4 million acres.

ExxonMobil recently forecast that its production in the Permian Basis will grow to two million barrels per day of crude oil output by 2027.

The stock of ExxonMobil has risen 7% over the last 12 months to trade at $116.95 U.S. per share.