Houston-based ConocoPhillips on Monday agreed to pay $9.5 billion to buy Royal Dutch Shell plc’s Permian Basin portfolio, which a Shell executive said reflected “our focus on value over volumes” as it accelerates its energy transition from fossil fuels.

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Shell’s Permian business includes ownership in 225,000 net acres with current production of around 175,000 boe/d. Shell Enterprise LLC reached the agreement, which is subject to regulatory approval.

“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Shell Upstream director Wael Sawan. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of...