Shell, ExxonMobil Reportedly Seek Buyer for $8B Chemicals Venture

Shell PLC and ExxonMobil Corp. have put their joint chemicals venture up for sale, with a potential price tag of around $8 billion, according to a report. The news was first reported by the Financial Times and covered by Rigzone.

The sale process is reportedly underway and may draw interest from private equity firms. While the specific assets involved were not detailed in the source report, such joint ventures typically involve large-scale chemical and plastics manufacturing plants, known as crackers, that process natural gas liquids (NGLs).

For Bakken operators and royalty owners, the movement of integrated majors like ExxonMobil and Shell can signal broader strategic shifts. Both companies have significant upstream (production) and downstream (refining/chemicals) operations. A divestment of a major chemicals unit could indicate a strategic reallocation of capital.

In the context of the Bakken, which produces substantial volumes of NGLs like ethane and propane alongside crude oil, the health and strategy of the petrochemical sector are closely watched. These NGLs are key feedstocks for the chemical plants that would be similar to those in the reported joint venture. Major changes in ownership or strategy at large chemical complexes can influence long-term demand forecasts and pricing for Bakken NGLs.

However, the reported sale is at a corporate portfolio level and does not directly involve upstream Bakken assets. The immediate impact on daily drilling or production operations in North Dakota is likely minimal. The development is more indicative of the ongoing evolution of integrated oil companies as they manage large, diversified portfolios in response to market conditions and shareholder expectations.