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)

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