2nd Sep 2022 07:57
(Alliance News) - IKAV, a Germany-based energy asset manager, on Thursday said it will buy Californian oil producer Aera Energy LLC from Shell PLC and Exxon Mobil Corp.
Aera is a joint venture which is 52% owned by Shell and 48% by Exxon. Both energy firms confirmed they will sell their Aera interest to IKAV.
Shell is selling its 52% stake for USD2 billion in cash, with additional contingent payments based on future oil prices. Financial details of Exxon's share to Ikav were undisclosed.
Both Shell and Exxon expect the sale to close in the fourth quarter of 2022.
California-based Aera Energy produced 95,000 barrels of oil equivalent per day in 2021.
IKAV said: "Aera will remain as the operator, and IKAV's investment in Aera underlines that conventional energy will continue to play an essential role in California's energy supply during the state's transition to renewable sources."
IKAV Chair Constantin von Wasserschleben commented: "In addition to our long-term goal and commitment to renewable energy, we recognise the continued need for oil and gas and for these assets to be operated safely and responsibly to facilitate a smooth and sustainable transformation of our energy supply. We advocate a co-existence between renewable and conventional energy for decades to come. Aera fits our philosophy, and we are excited to be working with its exceptional team, who share our culture and long-term ambitions. Together, we have the expertise required to find innovative solutions to meet California's energy demand as well as its future climate goals."
By Tom Budszus; [email protected]
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