Exxon Mobil intensifies US shale gas asset sales

Exxon Mobil has launched the sale of its shale gas properties underscoring growing intents to divest its U.S. assets.

Excon, a top U.S. oil producer, has placed 61 wells that produced nearly 81 million cubic feet per day equivalent (mmcfd) of natural gas in 2021. The sale also includes 274 wells operated by other companies.

A sale could value the assets at around $200 million based on current natural gas prices and existing production from the wells, said a source familiar with the matter at hand.

“ExxonMobil is providing information to third parties that may have an interest in the assets, but no agreement has been reached and no buyer has been identified,” said ExxonMobil’s spokeswoman Sarah Nordin while adding, “Operations are continuing”.

In 2020, the oil giant wrote down properties worth $20 billion that it purchased a decade ago primarily through its subsidiary XTO Energy. Following the writedown, it removed gas assets in Appalachia, the Rocky Mountains, Oklahoma, Texas and elsewhere from its development plan.

In 2017, the Ohio properties produced around 250 mmcfd of gas. They are among assets that Exxon placed on the market as it focuses development in Guyana, offshore Brazil and Texas’s Permian Basin shale field.

Three years ago, ExxonMobil set a goal of raising $15 billion from asset sales. Last year it accelerated its marketing efforts as energy prices recovered from the pandemic.

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