Anadarko and Shell may end Texas tie-up

Oil giants Royal Dutch Shell and Anadarko could divorce their decade-long joint venture in the largest oil field in the United States in a bid to accelerate discoveries.

Texas’s Anadarko and London-listed Shell’s deal over the oil-rich Permian Basin in Texas goes back to 2007, but Shell insiders said the pair are considering splitting up their co-working deal and re-parcelling acreage so each oil major drills and develops wells solo.

The Permian’s cheap operating costs have made it a hot prospect as crude prices linger under $50 per barrel.

Shell plans to raise its North American shale output by 140,000 barrels of oil equivalent per day over three years.

Anadarko would become the operator of the duo’s 350,000-plus acre plot in the Permian, with about a 60% stake.