ExxonMobil Corporation XOM is reportedly planning to sell conventional oil reserves in the Permian Basin that could be worth $1 billion.

The company plans to shift its focus to expanding shale production after completing the $60 billion acquisition of Pioneer Natural Resources Co. in May, Bloomberg reported.

Read: Report: Exxon Mobil cuts staff after merger with Pioneer

The assets also included older wells in the Central Permian Basin that produced small but steady amounts of oil, the report said, citing sources familiar with the matter.

In a statement in response to questions from Bloomberg News, the company said it is “reviewing market interest in select conventional assets in West Texas and southeast New Mexico.”

“This decision is in line with our strategy to continuously evaluate our portfolio.”

Read: Exxon Mobil’s strong second-quarter results and production increases offset by economic concerns: Analysts cautiously optimistic

This week, Exxon Mobil forecast that crude oil demand will remain above 100 million barrels per day through 2050, with demand stabilizing after 2030. The company added that without new investment, oil supplies could fall below 30 million barrels per day by 2030, risking a large deficit.

Exxon said it plans to produce 4.3 million barrels of oil and gas per day this year.

In July, the energy giant signed a deal to sell its Malaysian oil and gas assets to the state-owned energy company. PetronasThis marks the company’s exit from the country’s upstream sector, where it once held a dominant position.

Investors can participate in XOM via Select Energy Sector SPDR Fund XLE And iShares US Energy ETF I am.

Price promotion: XOM shares fell 0.23% to $117.41 in premarket trading at last check Wednesday.

Photo: Del Henderson Jr. via Shutterstock

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