IKAV to acquire Californian oil and gas producer Aera Energy

Aera Energy, which is jointly owned by the affiliates of Shell and ExxonMobil, produced around 95,000 barrels of crude oil equivalent per day last year


Germany-headquartered asset management group IKAV has agreed to acquire Aera Energy, one of the largest oil and gas producers in the US state of California.

The asset manager has entered into two separate transactions with the joint venture subsidiaries of ExxonMobil and Shell to acquire Aera Energy.

According to a Reuters report, the deal has a combined value of $4bn.

Established in 1997, Aera Energy is jointly owned by the affiliates of Shell and ExxonMobil. Most of the company’s production is centred in the San Joaquin Valley where it operates around 13,000 wells. It also has oil field operations in Ventura and Monterey counties.

Last year, the company produced around 95,000 barrels of crude oil equivalent per day.

Aera will continue to operate its assets, while IKAV will help the company to ensure safe and responsible energy production.

IKAV chairman Constantin von Wasserschleben said: “In addition to our long-term goal and commitment to renewable energy, we recognise 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.

“We advocate a co-existence between renewable and conventional energy for decades to come. Aera fits our philosophy, and we are excited to be working with its exceptional team, who share our culture and long-term ambitions.  Together, we have the expertise required to find innovative solutions to meet California’s energy demand as well as its future climate goals.”

The deal is slated to close in the fourth quarter of this year, subject to regulatory approvals.

Once complete, the transaction will also mark the exit of Shell’s upstream operations in California. However, it will continue to have presence in the state through other assets and projects.

Shell Upstream director Zoe Yujnovich said: “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.”

In July, Shell USA and publicly-listed US-based midstream operator Shell Midstream Partners (SHLX) agreed to merge operations in a deal worth around $1.96bn.

Source: Nsenergybusiness.com