Shell to Sell Interest in Aera Energy to IKAV

(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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Published on TravelNewsAsia.com at:
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