Shell (RDS.B, $38.97) will sell Permian assets to ConocoPhillips for $9.5 billion

Royal Dutch Shell  has agreed to sell its Permian basin assets to ConocoPhillips  for $9.5 billion cash.

If the transaction goes through, all of subsidiary Shell Enterprises’ interest in 225,000 net acres in the Permian basin will be transferred to ConocoPhillips.

The cash proceeds from the transaction will be used to fund $7 billion in additional shareholder distributions after closing. The remaining amount will be used for further balance sheet strengthening .

The deal is subject to regulatory approvals.

The effective date of the sale was July 1, with the deal closing expected in the fourth quarter of 2021.

Shell's Permian employees in Midland, Texas, and Houston will be offered employment opportunities with ConocoPhillips under terms of the transaction.