Exxon Mobil and Shell confirmed the sale of their California oil joint-venture Aera to German asset manager IKAV for $4 billion
Aera is one of California’s largest oil and gas producers, accounting for nearly 25% of the state’s production and was formed in 1997. In 2021 Aera produced approximately 95,000 barrels of crude oil equivalent per day.
“In addition to our long-term goal and commitment to renewable energy, we recognize 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”, said IKAV chairman Constantin von Wasserschleben.
The transactions are subject to regulatory approval.
According to analysts, the sale reflects both oil giants’ plan to move out of mature energy properties at times when high oil and gas prices are favoring new deals.
IKAV has $2.49 billion under management and owns wind, solar, geothermal and oil and gas operations.
In 2019 the German firm acquired BP’s San Juan gas assets in Colorado and New Mexico.