What's Going On With Exxon Mobil Shares Tuesday?

Author: Lekha Gupta | July 30, 2024 02:50pm

Exxon Mobil Corporation (NYSE:XOM) and Shell PLC (NYSE:SHEL) subsidiaries agreed to sell a group of assets in the U.K. Southern North Sea to a British energy company, Viaro Energy, for an undisclosed amount.

In particular, Shell U.K. Limited and Esso Exploration and Production UK Limited will sell a portfolio of 11 operated offshore assets and one exploration field, including Shamrock, Caravel, Corvette, Brigantine, Leman, Galleon, Skiff, Carrack Main, Cutter, Carrack East, Barque, and Clipper.

These assets are linked to the Shell-operated onshore Bacton Gas Processing Terminal via the Leman and Clipper fields.

Read: Shell Requests Approval for Exploration Wells Off South Africa’s Coast: Report

These assets produced around 28,000 boepd in 2023, representing about 5% of the U.K.’s total gas output.

Francesco Mazzagatti, CEO of Viaro Energy, said, “Shell and ExxonMobil's Southern North Sea portfolio is not only the backbone of the UK's energy production and security, but it also represents one of the best strategically placed solutions that have the potential to play an important role in the energy transition. With strong potential for wind farm synergies, electrification of upstream assets, CCS and hydrogen supply, this acquisition fits Viaro's ongoing and planned activities across the energy sector perfectly."

This month, Exxon reportedly finalized a deal to sell its Malaysian oil and gas assets to state energy firm Petronas, marking its exit from the country's upstream sector, where it once held a dominant position.

Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund (NYSE:XLE) and IShares U.S. Energy ETF (NYSE:IYE).

Price Action: XOM shares are up 1.76% at $118.15 at the last check Tuesday.

Photo: Del Henderson Jr. via Shutterstock

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Posted In: IYE SHEL XLE XOM