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Exclusive-Conoco offers to sell some secondary U.S. oil acreage -document

Exclusive-Conoco offers to sell some secondary U.S. oil acreage -document
Exclusive-Conoco offers to sell some secondary U.S. oil acreage -document   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By David French and Arathy S Nair</p> <p> – ConocoPhillips is offering to sell about $500 million in conventional oil and gas properties in the top U.S. oil basin, according to a marketing document seen by Reuters, hoping to unload less valuable acreage after two major shale acquisitions. </p> <p>On Monday, Houston-based Conoco agreed to buy Royal Dutch Shell’s Permian basin properties for $9.5 billion in cash. In January, Conoco acquired another Permian producer, Concho Resources, for $13.3 billion in stock. </p> <p>The third-largest U.S. oil producer by market value has hired investment bank <span class="caps">RBC</span> Capital Markets to handle the upcoming sale, according to a marketing document dated fall 2021. </p> <p>The offer covers lower-value oil and gas producing properties in the Central Basin Platform (<span class="caps">CBP</span>) and Northern Shelf formations, spread across west Texas and New Mexico. </p> <p>ConocoPhillips spokesperson Dennis Nuss declined to comment.</p> <p><span class="caps">RBC</span> Capital Markets did not reply to requests for comment.</p> <p>U.S. energy companies have stepped up divestments with oil trading above $73 a barrel, a 51% increase this year, and U.S. natural gas prices have almost doubled on rising demand. Chevron Corp and Occidental Petroleum Corp recently offered Permian assets for sale.</p> <p>ConocoPhillips has signaled its interest in accelerating divestments after the two shale deals. It plans to divest as much as $5 billion in assets by 2023, with a focus on less productive parts of its Permian portfolio, it said this week. It also has said it aims to sell a stake in some of its Alaskan assets. </p> <p>Its Permian properties were valued at around $500 million, based on proved developed producing (<span class="caps">PDP</span>) valuation measures, the marketing document said. </p> <p>Initial bid proposals are due on Oct. 13. The <span class="caps">CBP</span> assets produced about 9,260 barrels of oil and gas per day (boepd), while the Northwest Shelf produced about 3,840 boepd, the document added.</p> <p/> </div>