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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