Exxon Seeks to Sell $1bn in Permian Oil Assets to Focus on Shale

Exxon Mobil Corp (XOM.N) is exploring the sale of conventional oil and gas assets in the Permian Basin, potentially raising around $1 billion, Bloomberg reported.

In a statement to Bloomberg, Exxon said it was “exploring market interest for select conventional assets in West Texas and Southeast New Mexico,” noting that the decision aligns with its strategy of regularly evaluating its portfolio.

According to unnamed sources cited by Bloomberg, the assets include wells in the Central Basin of the Permian, which, while not high in production, maintain stable output. The move is in line with Exxon’s shift towards greater emphasis on shale oil and gas development.

Earlier this year, Exxon completed a $60 billion acquisition of Pioneer Natural Resources (PXD.N), a deal that significantly expanded its footprint in the Permian Basin.

The acquisition added over 1.4 million net acres in the Delaware and Midland basins, and Exxon expects combined production to reach 1.3 million barrels per day (bpd) in the near term.

Exxon projects production in the Permian to hit 2 million bpd by 2027, reflecting the long-term strategic value of the acquisition. Meanwhile, Exxon aims to boost its total oil output to 4.3 million bpd this year, the highest in a decade, Bloomberg noted.

The sale of conventional assets would support Exxon’s focus on higher-growth shale opportunities, aligning with its broader production goals.