Market Chatter: Equinor Taps Bank of America for Sale of Onshore Assets in Argentina

Shell agreed to acquire an additional 15.96% working interest in its operated Ursa Tension-Leg Platform in the Gulf of America from ConocoPhillips Co., according to a Feb. 21 release.

The deal, signed through its Shell Offshore and Shell Pipeline subsidiaries, will increase the British oil and gas company's stake in the project to 61.35% from 45.3884%.

Other owners of the Ursa platform are BP's (BP.L) BP Exploration & Production and ECP GOM III, with interests of 22.6916% and 15.96%, respectively.

Completion of the acquisition is expected by the end of the second quarter, subject to customary closing conditions, including regulatory approvals.

Energy stocks were lower late Friday afternoon, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) both dropping 1.9%.

The Philadelphia Oil Service Sector index slumped 3.4%, and the Dow Jones US Utilities index was fractionally lower.

Front-month West Texas Intermediate crude oil fell 3% to $70.32 a barrel while the global benchmark Brent crude contract dropped 2.9% to $74.29 a barrel. Henry Hub natural gas futures jumped 2.8% to $4.27 per 1 million BTU.

In corporate news, Equinor is considering divesting its onshore oil and gas assets in Argentina's Vaca Muerta region, Reuters reported. Equinor shares were falling 1%.

ConocoPhillips said it signed a deal to sell its stakes in the Ursa and Europa Fields and Ursa Oil Pipeline Co. to Shell units for $735 million. ConocoPhillips was falling 3.5%, and Shell was down 2.3%.

Consolidated Edison shares climbed 3.5%. The company reported Q4 adjusted net income late Thursday of $0.98 per diluted share, down from $1 a year earlier. Analysts polled by FactSet expected $0.95.

Diamondback Energy said Thursday that Travis Stice will step down as chief executive but remain as executive chairman through the company's 2026 annual meeting. Diamondback shares fell 3.4%.

Energy stocks were lower late Friday afternoon, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) both dropping 1.9%.

The Philadelphia Oil Service Sector index slumped 3.4%, and the Dow Jones US Utilities index was fractionally lower.

Front-month West Texas Intermediate crude oil fell 3% to $70.32 a barrel while the global benchmark Brent crude contract dropped 2.9% to $74.29 a barrel. Henry Hub natural gas futures jumped 2.8% to $4.27 per 1 million BTU.

In corporate news, Equinor is considering divesting its onshore oil and gas assets in Argentina's Vaca Muerta region, Reuters reported. Equinor shares were falling 1%.

Equinor is considering divesting its onshore oil and gas assets in Argentina's Vaca Muerta region, Reuters reported Friday, citing Argentina-based publication publication Mas Energia.

The company has engaged Bank of America to facilitate the sale of its stakes in the Bandurria Sur and Bajo del Toro Norte licenses, in which it holds 30% and 50%, respectively, according to the report.

Equinor does not plan to sell its interests in offshore licenses in Argentina.

Bandurria Sur is currently producing around 70,000 barrels of oil equivalent per day, while Bajo del Toro Norte has yet to be developed, the report added.

Equinor did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Energy stocks were lower Friday afternoon, with the NYSE Energy Sector Index falling 0.9% and the Energy Select Sector SPDR Fund (XLE) dropping 1.7%.

The Philadelphia Oil Service Sector index slumped 3.2%, and the Dow Jones US Utilities index shed 0.2%.

Front-month West Texas Intermediate crude oil was declining 2.4% to $70.71 a barrel while the global benchmark Brent crude contract was dropping 2.3% to $74.74 a barrel. Henry Hub natural gas futures jumped 3.4% to $4.29 per 1 million BTU.

In corporate news, ConocoPhillips said it signed a deal to sell its interests in the Ursa and Europa Fields and Ursa Oil Pipeline Company to Shell's subsidiaries for $735 million. ConocoPhillips was falling 3%, and Shell was down 2.3%.

Diamondback Energy on Thursday said Travis Stice will step down as chief executive but remain as executive chairman through the company's 2026 annual meeting. Diamondback shares were down 3.3%.

Solaris Energy Infrastructure shares jumped 25% after it reported an increase in Q4 revenue, while adjusted earnings declined.

By Dean Seal

ConocoPhillips has agreed to sell two oilfields and a pipeline in the Gulf of Mexico to Shell subsidiaries for $735 million.

The Houston oil giant said Friday that it would sell the Ursa and Europa fields as well as the Ursa Oil Pipeline Company to Shell Offshore and Shell Pipeline Company. The deal includes an overriding royalty interest in the Ursa field.

Shell said in a separate release that with the deal, it is increasing its stake in the Ursa platform to 61.35%, a maximum limit, from 45.4%. ConocoPhillips said it would use proceeds from the sale for general corporate purposes.

The deal is expected to close by the end of the second quarter.

Write to Dean Seal at dean.seal@wsj.com