Reuters
Shell’s U.S. exit gives investors a sugar rush
September 21, 20211:17 PM BST
LONDON, Sept 21 (Reuters Breakingviews) – Royal Dutch Shell (RDSa.L), has left the building. The $153 billion Anglo-Dutch oil giant on Monday offloaded 225,000 acres of shale assets in the Permian basin to U.S. rival ConocoPhillips (COP.N) for $9.5 billion in cash.
With oil at $70 per barrel, the price looks on the low side: consultancy Wood Mackenzie estimates the assets are worth more than $13 billion. But at $42,000 an acre it’s roughly in line with recent local deals, according to Berenberg analysts.
And given a Dutch court has ordered Shell to slash carbon emissions by 45% by 2030, boss Ben van Beurden needs to cut somewhere.
Editing by Peter Thal Larsen and Karen Kwok
