Shell completes sell of interest in “big three” California oil producer to IKAV
(WO) – Shell Offshore Inc., a subsidiary of Shell plc, has completed the previously announced sale of its 100% interest in Shell Onshore Ventures LLC which holds a 51.8% membership interest in Aera Energy LLC to IKAV.
The sale is part of Shell’s strategy to create a resilient and competitive upstream portfolio by focusing on positions with high growth potential and a strong integrated value chain.
Headquartered in Bakersfield, California, Aera Energy LLC is operated as an independent company with around 13,000 wells in the San Joaquin Valley in California, producing oil and associated gas.
The total consideration is approximately $2 billion in cash with additional contingent payments based on oil prices and has an effective date of October 1, 2021.
Shell remains active in California with a statewide footprint that includes gas and power trading and hydrogen and LNG fueling stations. California is a key market for Shell’s Renewables and Energy Solutions business given its advanced, emerging technology and country-leading research and development.