The sale aligns with the company’s strategy to focus on expanding its shale production. Credit: rarrarorro/Shutterstock.

ExxonMobil is considering the sale a package of conventional oil assets in the Permian Basin, reported Bloomberg, citing sources.  

The potential transaction could be worth approximately $1bn, the sources said.   

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The sale aligns with the company’s strategy to focus on expanding its shale production, particularly after its $60bn acquisition of Pioneer Natural Resources earlier this year. 

Exxon’s assets on offer include mature wells in the central basin of the Permian, known for their consistent, albeit modest, oil output.  

Sources familiar with the matter told the publication that the final sale price is contingent on prevailing oil prices.  

The oil and gas sector has seen a surge in deal values this year, with a total worth of $210bn, doubling from the previous year’s figures. 

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In a statement to the publication, Exxon clarified its position, stating: “We are exploring market interest for select conventional assets in West Texas and South East New Mexico. This decision is consistent with our strategy to continually evaluate our portfolio.”  

The company assured that operations would continue uninterrupted during the marketing process. 

Exxon’s global production is projected to hit a record 4.3 million barrels per day (mbbl/d) this year, marking the highest output in more than a decade, following the completion of the Pioneer acquisition.  

For the second quarter (Q2) of 2024, Exxon reported a net income of $9.24bn, up 17.2% from the $7.88bn recorded in the same period the previous year.  

Additionally, the company’s total revenues and other income for Q2 rose to $93.06bn from $82.91bn year-over-year. 

Looking ahead, Exxon believes oil demand could remain as strong as current levels or even increase over the next 25 years.  

The company’s 2024 Global Outlook Report forecasts a 15% rise in total energy use by 2050, with an 80% growth in electricity consumption.  

Despite the energy transition, Exxon predicts that oil demand will remain above 100mbbl/d by 2050.