ExxonMobil and Shell to sell interest in Aera Energy joint venture

Source: press releases, 1 September 2022

photo: Area Energy
photo: Area Energy

Shell and ExxonMobil affiliates have signed an agreement to sell all interests in the Aera oil-production operation in California to Green Gate Resources E, LLC, a subsidiary of IKAV.

Mobil California Exploration & Producing Company holds a 48.2% share of Aera Energy LLC and a 50% share of Aera Energy Services Company. The joint venture with Shell was formed in June 1997 and has operations in eight onshore fields. In 2021, Aera produced about 95,000 oil-equivalent barrels per day.

Headquartered in Bakersfield, California, Aera Energy LLC is operated as an independent company.

“This sale is part of our strategy to continually strengthen our industry-leading portfolio, focusing our investments in low-cost-of-supply oil and natural gas to meet consumer demand and create value for our shareholders,” says Liam Mallon, president of ExxonMobil Upstream Company.

“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,” says Zoe Yujnovich, Shell’s Upstream Director.

The sale does not affect ExxonMobil’s branded network of about 500 independently owned retail sites in California.

While this transaction will end Shell’s Upstream position in California, Shell will remain active in the state through a variety of other assets and projects.

The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals.