Oil giant Royal Dutch Shell is reviewing its stakes in America’s largest oil field for a possible sale as the company seeks to focus on its most profitable oil and gas assets and increase its low-carbon investments, sources said.
The sale could include part or all of Shell’s position in the Permian Basin of the United States, located primarily in Texas. The properties could be worth as much as $ 10 billion, said the sources, who asked to remain anonymous because the conversations are private.
The company declined to comment.
Shell is one of the world’s largest oil companies under pressure to reduce its investment in fossil fuels to stop changes in the global climate caused by carbon emissions.
Shell and its rivals BP and Total have committed to reducing emissions through increased investment in renewables while divesting some holdings in oil and gas.
At the beginning of the year, Shell established one of the most ambitious climate strategies in the sector, aiming to reduce the carbon intensity of its products by at least 6% by 2023, 20% by 2030, 45% by 2035 and 100% by 2050 from 2016 levels.
However, a Dutch court said last month that Shell’s efforts are not enough, ordering it to cut emissions by 45% by 2030 from 2019 levels.
Last month, the International Energy Agency (IEA) said in a report that investments in new fossil fuel projects should stop immediately to meet UN-backed goals to limit global warming.
