June 14, 2021

Shell mulls sale of US’ largest oil field amid climate push

By ellen

NEW YORK (BLOOMBERG) – Royal Dutch Shell is reviewing its holdings in the largest oil field in the United States, a possible sale that could raise as much as US$10 billion (S$13.3 billion), according to Reuters.

The potential sale could include all of Shell’s 260,000 acres (105,220ha) in the Permian Basin, Reuters reported citing unidentified sources familiar with the matter. Shell declined to comment on Reuters’ report.

The oil and gas behemoth is under pressure to accelerate carbon emissions cuts after a Dutch court ruled last month that the company’s climate plans did not go far enough. The order to cut emissions faster and more drastically than planned is likely to have far-reaching consequences on the sector.

Shell, which has 92,000 employees spanning 70 countries, had planned to cut emissions by 20 per cent by 2030.

The court in The Hague, however, ordered it to reduce its absolute emissions by 45 per cent compared with 2019 levels, after the Dutch arm of Friends of the Earth sued Shell for violating human rights by contributing to global warming.

Chief executive Ben van Beurden said Shell expects to appeal the verdict, and that the company has been unfairly targeted. Still, he described a plan to take “bold but measured” steps to cut emissions.