27 Mar Shell and Anadarko to end 10-year joint venture
Royal Dutch Shell (LSE:RDS) and Anadarko Petroleum Corp (NYSE:APC) are in discussions regarding the termination of a 10-year joint venture in the Permian Basin of Texas.
The separation would split each firm’s properties in the oil-rich basin, allowing them to drill and develop new wells at their own accord.
Greg Guidry, head of Shell’s unconventionals business, told Reuters that the companies are unlikely to renew their partnership agreement, which expires this summer.
“We could have ideally two 100% owned and operated parcels,” said Guidry.
“That would be a split that will allow us to manage the flexibilities in terms of capital pace, separate of Anadarko.”
The Permian Basin has seen a flurry of action in recent months, emerging as one of the best areas for project development in the US, due to low operating costs.
Shell is looking to further accelerate its US shale output in the near future, while Anadarko is also developing its holdings in West Texas.
The American multinational has reorganised its company portfolio, making divestments which have raised US$6 billion in cash, which is expected to be used for Permian expansion projects.