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Exclusive Conoco proposes to sell certain secondary oil land in the United States document

According to a marketing document obtained, Conoco Phillips is proposing to sell nearly $500 million in conventional oil and gas holdings in the main U.S. oil basin, trying to offload less attractive land following two large shale purchases. Conoco Phillips (LON: RDSa) agreed to purchase Royal Dutch Shell’s (LON: RDSa) Permian basin holdings for $9.5 billion in cash on Monday. Conoco purchased another Permian producer, Concho Resources, in January for $13.3 billion in shares.

As mentioned in the marketing document fall 2021, the third-largest US oil manufacturer by market price has selected asset bank RBC Capital Markets to direct the upcoming sale.With oil selling at $73 a barrel, a 51% rise this year, and US natural gas prices nearly tripling due to rising demand, US energy firms have intensified divestments. Chevron Corporation and Occidental Petroleum Corporation announced the sale of Permian properties recently.

Exclusive Conoco proposes to sell certain secondary oil land in the United States documentFollowing the two shale agreements, Conoco Phillips has indicated a desire to accelerate divestments. It said this week that it plans to sell up to $5 billion in assets by 2023, with a concentration on less productive Permian assets. It has also declared its plan to sell some of its Alaskan holdings.

According to the marketing brochure, its Permian holdings were evaluated at about $500 million based on proven developed producing (PDP) valuation criteria. The deadline for initial bid submissions is October 13. According to the research, the CBP assets produced roughly 9,260 barrels of oil and gas per day, while the Northwest Shelf produced approximately 3,840 boepd.

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