Exxon Mobil, the biggest oil producer in the United States, has begun the selling of important shale assets, as it tries to push a long-delayed divesting strategy; Reuters reported. The divesting program tries to raise billions from the divesting of unwanted assets; the revenue would reduce the company’s debt.
Firstly, three years ago the company said it would try to raise $15 billion from sales by December 2021. More recently, it promised to accelerate lagging sales to whittle a record $70 billion debt pile.
Secondly, one of the assets currently under the category of “for sale” is the XTO Energy shale unit; the company seeks buyers for almost 5,000 natural gas wells in the Fayetteville Shale in Arkansas, spokeswoman Julie King confirmed to Reuters.
Thirdly, the assets are among gas projects with declining production; the company is selling them as it tries to focus on their new ventures and discoveries in Guyana, offshore Brazil; and also, the Texas Permian Basin, as we reported previously.
Moreover, King added. “We are providing information to third parties that may have an interest in the assets; however, no buyers have been identified.” She declined to comment on the due for bids or the company’s anticipated value on the wells.
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Exxon has already reached a third of its raising goal
In addition, according to Reuters, Exxon has already reached a third of its sales goal; raising around $557 million through June; also has deals pending valued at more than $2.15 billion.
On the other hand, the company acquired the Fayetteville Shale assets back in 2010 for $650 million; during the shale boom that would change the U.S. energy landscape, later leading to an oversupply of gas that pushed prices to record lows and last year.
However, output in the assets on offer fell by more than half since 2016; to about 160 million cubic feet per day last year.
Finally, the Arkansas properties cover some 416,000 net acres; and are some of the North American natural gas resources cut last year from Exxon’s development plan. The sale also includes 844 operated and 4,104 non-operated wells, King said.
