Shell, Exxon Mobil Sell California Oil and Gas Producer to German Asset Manager
02 September 2022 - 7:37AM
Dow Jones News
By Denny Jacob
Exxon Mobil Corp. and Shell PLC are selling their stakes in one
of California's largest oil and gas producers to German asset
manager IKAV Capital Partners GmbH.
Aera Energy LLC, a joint venture of the oil giants, accounts for
nearly a quarter of the state's production, according to its
website.
Shell Offshore Inc. said Thursday it agreed to sell its entire
stake in Shell Onshore Ventures LLC, which owns 51.8% stake in Aera
Energy, to IKAV for $2 billion in cash as well as additional
contingent payments based on future oil prices.
Exxon Mobil said its affiliates agreed to sell their entire
stake in Aera to Green Gate Resources E LLC, a unit of IKAV. Exxon
Mobil didn't disclose the terms of the transaction.
Mobil California Exploration & Producing Co., an affiliate
of Exxon Mobil, holds a 48.2% stake in Aera Energy and a 50% share
of Aera Energy Services Co.
Shell said it secured and will maintain its current oil
marketing agreements for at least five years after the sale is
completed.
"This decision supports our strategy to create a resilient and
competitive Upstream portfolio by focusing on positions with high
growth potential and a strong integrated value chain," said Zoe
Yujnovich, Shell's Upstream director.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
September 01, 2022 17:22 ET (21:22 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Shell (NYSE:SHEL)
Historical Stock Chart
From Apr 2024 to May 2024
Shell (NYSE:SHEL)
Historical Stock Chart
From May 2023 to May 2024