Royal Dutch Shell Plc (NYSE: RDS.A) and Anadarko Petroleum Corp. (NYSE: APC) are renegotiating their five-year-old joint venture (JV) in the Permian Basin in Texas, Shell's CFO Simon Henry said on Feb. 2.
The 50-50 JV in the Delaware Basin, which expires in 2017, will likely see the operatorship of the asset "consolidated in a different way", Henry said in an earnings presentation to analysts.
Henry also said that Shell's position in the Haynesville Shale to the east of the Permian, which it acquired through its takeover of BG Group in 2016, "won't necessarily stay in our portfolio."
Shell is in the midst of a $30 billion global asset disposal program and previously said it has put up for sale two assets in its U.S. shale portfolio.
Shell plans to make its shale operations in North America and Argentina a major production growth engine in the 2020s.
On Feb. 2, it said it plans to grow its production in the Permian, and in the Fox Creek Basin in Canada, by about 140,000 barrels per day of oil equivalent in the near-term.
Oil majors including ExxonMobil Corp. (NYSE: XOM) and Statoil ASA (NYSE: STO) have significantly increased their stakes in U.S. shale in recent months as they seek to profit from the relatively short time and low spending it takes to ramp up production.
Recommended Reading
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.
Green Swan Seeks US Financing for Global Decarbonization Projects
2024-02-21 - Green Swan, an investment platform seeking to provide capital to countries signed on to the Paris Agreement, is courting U.S. investors to fund decarbonization projects in countries including Iran and Venezuela, its executives told Hart Energy.