Page 8 - NorthAmOil Week 12 2022
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NorthAmOil                                    INVESTMENT                                          NorthAmOil


       ConocoPhillips reportedly




       pursuing Anadarko Basin sale




        ANADARKO         CONOCOPHILLIPS is reportedly working  non-operated assets, and could sell them either
        BASIN            with an adviser to sell its gas-producing assets in  to a single bidder or multiple parties. The sources
                         the Anadarko Basin, which spans North Texas  added that the company could end up holding
                         and Western Oklahoma.                onto one or both packages of assets if it does not
                           Reuters reported this week, citing sources  receive sufficiently attractive offers. This comes
                         familiar with the matter and documents it had  as oil and gas prices remain at multi-year highs,
                         seen, that the planned sale included both oper-  helping to push up the value of producing assets.
                         ated and non-operated leaseholds, as well as   According to the sources, the operated assets
                         royalty interests. The assets are located across  could fetch around $200mn, while the non-op-
                         the Anadarko Basin’s SCOOP and STACK for-  erated assets could be valued at roughly $100mn.
                         mations, which generated considerable interest   ConocoPhillips has made several major
                         several years ago but ultimately did not prove to  acquisitions over the past 18 months, with a
                         be as productive as other US shale regions.  focus on the prolific Permian Basin. It acquired
                           According to the marketing document seen  Concho Resources for $9.7bn in early 2021 and
                         by Reuters, ConocoPhillips’ operated assets  bought Shell’s Permian assets for $9.5bn at the
                         in the Anadarko Basin cover 261,200 net acres  end of the year. At the same time, the company
                         (1,057 square km) and produce around 8,000  has stepped up efforts to offload non-core assets,
                         barrels of oil equivalent per day (boepd). The  raising its target for asset sales to $4-5bn by 2023
                         non-operated assets are reported to cover 17,700  in the wake of the acquisition from Shell.
                         acres (72 square km), with output of 3,000 boepd.  At the start of this year, ConocoPhillips
                           The news service’s sources said ConocoPhil-  agreed to sell certain non-core Permian assets to
                         lips had begun marketing both the operated and  Maverick Natural Resources for $440mn.™

                                                        POLICY

       Biden administration to resume



       federal oil and gas leasing





        US               THE administration of US President Joe Biden  producing states, who mounted a legal chal-
                         will resume oil and gas leasing on federal land  lenge against the measure, claiming it would
                         following a court decision temporarily reinstat-  cost the US economy hundreds of billions – or
                         ing a measure that puts a higher price on the  even trillions – of dollars. They also described
                         greenhouse gas (GHG) emissions associated  it as possibly £the most significant regulatory
                         with projects.                       encroachment upon individual liberty and state
                           The development marks the latest twist in  sovereignty in American history”.
                         a saga that has been ongoing since Biden took   Around a month ago, the US Department of
                         office and attempted to review and overhaul the  the Interior (DoI) said it would delay upcom-
                         federal oil and gas leasing system, with climate  ing federal oil and gas lease sales after a court
                         change concerns in mind.             blocked it from using this “social cost of carbon”
                           The previous administration, under former  value to factor the risks of climate change into
                         US President Donald Trump, had imposed a  permitting decisions on federal land. But last
                         value of roughly $10 per ton (0.91 per tonne)  week, a federal appeals court allowed the gov-
                         of GHGs emitted. But the Biden administra-  ernment to continue using the value temporarily.
                         tion reverted to a far higher value of around   “With this ruling, the department continues
                         $50 per ton, which had been brought in by the  its planning for responsible oil and gas develop-
                         administration of former President Barack  ment on America’s public lands and waters,” a
                         Obama, under whom Biden had served as  DoI spokesperson, Melissa Schwartz, told Reu-
                         Vice-President.                      ters in an emailed statement. She did not say how
                           The move was aimed at making more  soon lease sales would resume.
                         emissions-intensive projects more expensive,   The DoI has said it continues to move for-
                         and thus deterring producers from pursuing  ward with reforms to address “the significant
                         those developments. Unsurprisingly, it proved  shortcomings” in the US’ oil and gas leasing pro-
                         deeply unpopular with industry groups and oil  grammes, both onshore and offshore.™

       P8                                       www. NEWSBASE .com                         Week 12   24•March•2022
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