(04 September 2022, 10:26 +07)
Shell Offshore has agreed to sell its 100%
interest in Shell Onshore Ventures LLC which holds a 51.8%
membership interest in Aera Energy LLC to IKAV for a total
consideration of approximately $2 billion in cash with additional
contingent payments based on future oil prices, subject to
regulatory approval.
Headquartered in Bakersfield, California, Aera
Energy LLC is operated as an independent company and operates
around 13,000 wells in the San Joaquin Valley in California,
producing oil and associated gas.
IKAV is an international asset management group
invested across the energy sector from solar and wind to natural
gas.
Aera Energy
The transaction has an effective date of 1 October
2021 and is expected to close in Q4 2022. It is expected to result
in an approximate post-tax impairment of $0.3 to $0.4 billion for
Shell, subject to adjustments.
“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.
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 company has
also secured and will maintain its
current oil marketing agreement for a period of at least five
years following completion of the sale.
Shell has been in California for more than hundred
years and has a statewide footprint that includes gas and power
trading, electric vehicle (EV) charging, hydrogen and LNG fueling
stations, retail and lubricants, distribution facilities and
terminals.
The company has
interests in 50 states and employs more than 12,000 people.
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