HOUSTON, Aug. 10 (Reuters) – Exxon Mobile Corporation (XMN) has launched a long-term program to raise billions of dollars in unwanted assets and reduce last year’s debt by launching American Shale gas assets. .
Three years ago, the top US oil producer set a target of raising $ 15 billion from sales in December 2021. More recently, it has pledged to accelerate delayed sales by reducing $ 70 billion in debt.
Julie King, spokesman for the company’s XTO Energy Leill Unit, said it was looking for buyers for about 5,000 natural gas wells in Arkansas Fitville.
Among the declining gas projects, Exxon is selling new projects in Guyana, coastal Brazil, and the Permian Basin of Texas.
Exxon is introducing the property itself and aims to accept bids by September 16 and close any sales by the end of the year.
“We are providing information to third parties who may be interested in the property,” King said. No buyer has stated that there is no timetable for the auction or the company’s price on the wells.
The company has achieved about one-third of its $ 15 billion sales plan in three years. As of June this year, it has earned $ 557 million in sales, and has more than $ 2.15 billion in reserves. Read more
Excon In 2010, he bought Fetil’s assets at a cost of $ 650 million, changing the face of the United States, which pushed prices to lower levels and pushed up gas last year. This led Exx to lower US oil and gas prices by $ 17.1 billion. Read more
Impact on the property has been halved since 2016, up from about 160 million cubic feet a day last year, according to Reuters.
Arkansas’ assets cover about 416,000 acres (1,680 square miles) and are among some of North America’s natural resources that were cut off from Exxon’s growth plan last year. The sale includes 844 boreholes and 4,104 boreholes, King said.
Dallas-based Merit Energy is reviewing its assets, according to a source familiar with the matter. In 2018, Merit bought about 258,000 acres in the same area from BHP for $ 300 million.
Merit did not respond to requests for comment by telephone, email or link. Excon has declined to comment on potential bidders.
A.D. Exxon, with a historic loss of $ 22.4 billion by 2020, is selling dozens of properties in Asia, Africa, the United States and Europe.
Officials said last month that the company was prioritizing debt reduction and shareholder profits. Exxant has paid more than $ 7 billion this year and reduced its debt to $ 60.6 billion after doubling its total debt to $ 70 billion since 2018.
This year, he negotiated with SAVES.L on assets in Chad and Cameroon and sold shares in two deep oil fields to OXY.N and others. Read more
Exxon senior vice president Jack Williams said July 30 that Exxon is seeing new demand for its assets as oil and gas prices return this year.
“All of the transformation that we’ve had before will continue,” Williams said.
Sabrina Valle in Houston, Liz Hampton in Denver and Shark Khan in Bengaldu; Edited by Gary Mac Williams, Margarita Choi and David Gregory
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