Oct 30 (Reuters) - ConocoPhillips ( COP ) is exploring a

sale of some of its shale operations in the Permian Basin worth

more than $1 billion, two years after an unsuccessful attempt to

find a buyer for the same assets, people familiar with the

matter said on Wednesday.

The Houston, Texas-based oil and gas producer is looking to

shed some non-core assets as it prepares to close its $22.5

billion takeover of Marathon Oil ( MRO ) by year end. It is set

to assume about $5.4 billion of Marathon's debt as part of the

deal, and has outlined plans to raise $2 billion through asset

sales.

ConocoPhillips ( COP ) has tapped investment bankers at RBC Capital

Markets to run a sale process for the Permian assets and

in recent weeks invited bids from potential buyers, which

include smaller public and private oil producers, the sources

said, requesting anonymity as the discussions are confidential.

In 2022, ConocoPhillips ( COP ) had attempted to offload these

Permian operations but could not agree on a deal with potential

suitors, the sources said.

Production from the assets, which span 55,000 net acres in

the Delaware portion of the Permian Basin, is estimated to touch

about 17,000 barrels of oil equivalent per day by the end of the

year, with core earnings for 2025 estimated to be more than $220

million, the sources said. They cautioned that a deal is not

guaranteed.

ConocoPhillips ( COP ) declined to comment. RBC did not respond to

requests for comment.

The U.S. shale industry has witnessed a record-breaking wave

of dealmaking over the past two years, as energy companies have

rushed to expand oil and gas drilling inventories, especially in

the Permian Basin. Notable deals that have been agreed include

Exxon Mobil's ( XOM ) $60 billion acquisition of Pioneer Natural

Resources and Chevron's ( CVX ) proposed $53 billion takeover of oil

producer Hess.

The biggest acquirers are now looking to divest non-core

units in the wake of these takeovers, to streamline operations,

pay down debt, and boost shareholder returns.

Such assets are likely to attract smaller producers that are

turning to dealmaking to gain scale and compete better against

larger rivals.