According to sources familiar with the situation, oil giant Royal Dutch Shell is considering selling its stake in the United States’ largest oil field in order to focus on its most profitable oil-and-gas assets and develop its low-carbon initiatives.

Shell’s approximately 260,000 acres (105,200 hectares) in the Permian Basin, largely in Texas, could be sold in part or in whole. The holdings might be worth $10 billion, according to the people, who spoke on the condition of anonymity because the discussions are confidential.

Shell is one of the world’s top oil companies, and all of them have faced investor pressure to limit fossil-fuel investments in order to mitigate global climate change caused by carbon emissions. Shell, BP Plc, and TotalEnergies have all agreed to reduce emissions by increasing renewable energy investment and divesting some oil and gas interests.

Mergers and acquisitions in the main U.S. shale field increased dramatically in the last year, as some companies wanted to expand their holdings and others attempted to profit from rising prices by selling. Oil futures in the United States have risen 49 per cent this year to about $72 a barrel, more than double their 2020 low, as demand for the commodity increased as the pandemic faded.

Shell announced one of the industry’s most ambitious climate plans earlier this year, aiming to reduce the carbon intensity of its products by at least 6% by 2023, 20% by 2030, 45% by 2035, and 100% by 2050, compared to 2016 levels. Shell’s efforts, however, were not enough, according to a Dutch court last month, which ordered the company to reduce emissions by 45 per cent by 2030 compared to 2019 levels.