NorthAmOil: ExxonMobil seeks buyers for portion of Bakken assets

ExxonMobil has confirmed that it is seeking buyers for a portion of its assets in the Bakken unconventional play in North Dakota.

This comes after a recent wave of mergers and acquisitions (M&A) activity, which saw a number of major players consolidate their shale positions. ExxonMobil was among these companies, buying Pioneer Natural Resources for $59.5bn to more than double its Permian Basin footprint. In many cases, though, both recent and older acquisitions came with assets that the buyers consider to be non-core, and which they are now trying to offload.

"ExxonMobil is exploring market interest for select assets in the Bakken shale play, which includes approximately 137 operated wells and 676 non-operated and royalty wells across 49,000 net acres [198 square km] in North Dakota", an ExxonMobil spokesperson told Reuters in response to questions.

Two sources that had been briefed on the matter but are not authorised to speak publicly told the news service that the planned sale could fetch upwards of $500mn. They said a sale would be in line with ExxonMobil's plans to focus on assets with the highest growth potential following the acquisition of Pioneer.

This was echoed by the ExxonMobil spokesperson, who said the decision to sell the assets aligned with the company’s strategy to continually evaluate its portfolio. ExxonMobil declined to comment on the valuation, noting that it was a corporate practice not to share such information.

According to the anonymous sources, a large portion of the land on sale is undeveloped, which Reuters said could make it attractive to potential buyers, both in terms of building scale and in terms of the potential to boost output through future drilling.

ExxonMobil is one of the top producers in the Bakken, which remains the third largest oil-producing region in the US despite its relative maturity compared with other unconventional plays. Data from Rextag, Hart Energy’s energy infrastructure intelligence unit, show that ExxonMobil’s total Bakken production is over 100,000 barrels of oil equivalent per day (boepd).

Despite the sale, ExxonMobil has said it will continue to invest in shale production in North Dakota as part of its long-term strategy.

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