Exxon in Running for Shell's $8B U.S. Chemicals Business
The supermajor's potential acquisition and focus on international projects highlight strategic capital allocation moves.
ExxonMobil is among the companies competing to acquire Shell’s U.S. chemicals business in a deal that could be worth $8 billion, according to a report from the Financial Times cited by OilPrice.com. The potential buyers, which also include LyondellBasell, Apollo Global Management, and the Kuwait Petroleum Corporation, have submitted non-binding offers ranging from bids for parts to the entire division.
Shell’s U.S. chemicals assets consist of four facilities located in Louisiana, Texas, and Pennsylvania. The sale is part of a broader portfolio adjustment strategy Shell outlined in its 2025 Capital Markets Day, aiming to allocate capital to its strongest value drivers. Shell recently completed two other asset sales: its European onshore wind and solar business to TotalEnergies and a 35% stake in a Cyprus gas block to Hungary’s MOL.
This potential multibillion-dollar chemicals acquisition signals ExxonMobil's continued strategic focus on high-margin downstream and chemical operations. For Bakken operators and service companies, such large-scale corporate moves by a supermajor can influence broader market sentiment and capital flow within the industry, even if the assets are not directly in the Williston Basin. ExxonMobil, through its subsidiary XTO Energy, is a significant operator in North Dakota.
Separately, ExxonMobil is seeking to invest billions in a new project at the Kashagan oilfield in Kazakhstan, according to Rigzone. This investment is aimed at cushioning an expected production decline at the giant Tengiz field, where Exxon is a partner.
The simultaneous pursuit of a major chemicals acquisition and a massive international oil project underscores the scale of capital deployment decisions facing global supermajors. For the Bakken, these decisions highlight the competitive environment for finite capital investment. While ExxonMobil remains active in North Dakota, its strategic capital allocation is weighed against global opportunities, from U.S. chemicals to Caspian Sea oil developments.
Shell’s chemicals business contributed to strong second-quarter results, with the company reporting $9.84 billion in adjusted earnings driven by higher oil and gas prices, stronger refining margins, and higher chemicals margins, OilPrice.com reported. This performance demonstrates the value of integrated chemical operations, a segment that other large producers with Bakken assets may also be evaluating for portfolio strength.
Source
OilPrice.com, Rigzone
