Exxon plans $1B sale of Permian Basin oil assets

PERMIAN BASIN, Texas (KMID/KPEJ)- Exxon Mobil, one of the nation’s largest oil and gas-based companies, recently announced its plan to sell some of the Permian Basin’s assets with a potential sale seen at $1 billion.

According to Bloomberg reports released on Tuesday, August 27, Exonn is looking to sell the Permian Basin’s conventional oil assets to focus more on growing its shale production after the $60 billion purchase of Midland-based company, Pioneer Natural Resources.

Exxon stated that the company is “exploring market interest for select conventional assets in West Texas and South East New Mexico,” and that the decision is, “consistent with our (Exxon’s) strategy to continually evaluate our (Exxon) portfolio.”

The conventional oil assets that Exxon seeks to sell include older wells in the Central area of the Basin that produce small, but stable amounts of oil.

According to sources that remain unnamed by Bloomberg due to private sale negotiations, the sales price of the Basin’s assets heavily depends on oil prices, but said the sale could potentially be seen at $1 billion.

After completing the purchase of Midland-owned company, Pioneer, in May, Exonn’s oil production is expected to reach 4.3 million barrels a day by the end of this year. Data compiled by Bloomberg also showed that the value of deals in the oil and gas sector doubled to $210 billion this year and that

The details surrounding the sale have yet to be released. However, Exxon said that its operations will continue “as normal throughout the marketing process.”

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