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Royal Dutch Shell is reviewing its holdings in the largest U.S. oil field for a potential sale, people familiar with the matter told Reuters, marking a key moment in its shift away from fossil fuels as it faces growing pressure to slash carbon emissions.

The sale could be for part or all of Shell’s position in the U.S. Permian Basin, located mostly in Texas, which accounted for around 6% of the Anglo-Dutch company’s total oil and gas output last year. The holdings could be worth more than $10 billion, the people said.

Shell declined to comment.

There was no guarantee Shell would end up striking a deal for the assets, said the people, who spoke on condition of anonymity to discuss confidential information.

Shell, the second largest western energy company, and its peers have come under investor pressure to increase profits and slash planet-warming greenhouse gas emissions, including by shedding assets.

Any retreat from the Permian would mark a major shift from an area previously identified as one of nine core basins in its energy transition strategy to net-zero carbon emissions by 2050. For all the activity in the Permian, profits have remained elusive because of scale and constant drilling required to boost output.

[Ron Bousso, David French, Jessica Resnick-Ault]

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