KEY POINTS
- ExxonMobil plans to sell a portion of its Bakken shale assets.
- The sale follows the company’s acquisition of Pioneer Natural Resources.
- Exxon aims to focus on high-growth opportunities and streamline its portfolio.
Following its recent $60 billion acquisition of Pioneer Natural Resources, ExxonMobil, the biggest oil producer in the United States, has revealed plans to sell off a portion of its operations in North Dakota’s Bakken shale.
The company’s intention to optimize its portfolio for greater growth is in line with its choice to sell off assets.
The assets up for sale consist of 49,000 net acres of both produced and non-operated wells in the Bakken formation, which is one of the top oil-producing regions in the nation.
The sale might bring in over $500 million, according to people with knowledge of the situation. Since much of the property has not yet been developed, it is appealing to bidders looking for future production opportunities.
Focus on high-growth investments
Exxon said that it is measuring market interest in 676 non-operated and royalty wells in addition to 137 operational wells. “We are constantly assessing our portfolio to make sure it fits with our long-term strategy, including optimizing high-growth opportunities,” a company representative stated.
Exxon is giving priority to assets with the best growth prospects in the wake of a recent wave of megamergers in the US oil sector. While keeping a sizable presence in shale production in North Dakota and other areas, the corporation wants to reallocate resources to more lucrative endeavors.
This transaction follows another divestment attempt earlier this year in which Exxon held an auction for its Permian Basin conventional drilling operations.
Bakken remains key but realignment necessary
Exxon has reassured stakeholders that it is still dedicated to shale production in North Dakota in spite of the proposed disposal. According to Reuters, with more than 100,000 barrels of oil equivalent per day (boepd) currently produced from the Bakken, the business has established itself as one of the region’s leading producers.
Since the energy sector prioritizes scale in the face of shifting oil prices, the undeveloped nature of a large portion of the property being sold presents potential for buyers to increase future production.
Additionally, businesses aiming to grow their land banks may find the properties appealing because Bakken operations are among the most efficient.
