Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is planning to sell its stake in Eagle Ford Shale in South Texas. The energy company made the decision after recording a $2 billion charge against its assets in North America in its second quarter financial results, according to The Wall Street Journal.

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Shell is selling its leases for its 106,000 acres in Eagle Ford

The report indicated that Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is selling its leases for its 106,000 acres in Eagle Ford. The move of the energy company demonstrates that major oil companies are struggling in the oil-gas-rich region where smaller energy companies are succeeding.

According to Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B), its stake in the region did not meet its target size and profitability. Kelly op de Weegh, spokesperson for the energy company said Shell’s stake in Eagle Ford “offers a valuable growth opportunity for another experiences operator.”

Shell will continue operating its 150 production well

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) will continue operating its 150 production well in the region. It will allow potential buyers to evaluate the technical data on its assets. The offering price for its stake in Eagle Ford is unknown. The energy company would exit its more than five decades history in the energy industry in Texas after completing the sale of its assets in Eagle Ford.

In addition to its Eagle Ford stake, Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is also planning to sell its 600,000 acres in the Mississippi Lime formation in Kansas.

Peter Voser, chief executive officer of Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) stated in August that the company executed a rigorous portfolio management to improve its capital efficiency and to refresh its portfolio for growth. According to him, the company divested $21 billion worth of assets over the past three years and $4 billion over the past 12 months. He said Shell will divest more assets.

Voser said, “Shell is entering a new phase of more substantial portfolio change, which will lead to a higher rate of divestments in the coming years. Our strategy is to deliver sustainable growth in cash generation through the business cycle, underpinning Shell’s competitive dividends and returns. We are not targeting oil and gas production volumes; rather we are focusing on financial performance.”

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) was one of the major energy companies that was late in investing in Eagle Ford Shale and Barnett Shale near Forth Worth, Texas. The company purchased leases in Barnett Shale in 2006 and Eagle Ford Shale in 2010.