Shell Renegotiating Permian JV with Anadarko

Posted by Eric Haun

Royal Dutch Shell and Anadarko Petroleum are renegotiating their five-year-old joint venture in the Permian shale basin in Texas, Shell Chief Financial Officer Simon Henry said on Thursday.

The 50-50 JV in the Delaware basin, which expires this year, will likely see the operatorship of the asset "consolidated in a different way", Henry said in an earnings presentation to analysts.

Henry also said that Shell's position in the Haynesville basin to the east of the Permian, which it acquired through its takeover of BG Group last year, "won't necessarily stay in our portfolio."

The Anglo-Dutch oil and gas company is in the midst of a $30 billion global asset disposal programme and has previously said it has put up for sale two assets in its U.S. shale portfolio.

Shell plans to make its shale operations in North America and Argentina a major production growth engine in the 2020s.

On Thursday it said it plans to grow its production in the Permian and Fox Creek basin in Canada by some 140,000 barrels per day of oil equivalent in the near-term.

Oil majors including Exxon Mobil and Statoil have significantly increased their stakes in U.S. shale in recent months as they seek to profit from the relatively short time and low spending it takes to ramp up production.

(Reporting by Ron Bousso and Karolin Schaps; Editing by Adrian Croft)

Feb 2, 2017

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