The sale of a Shell Plc and Exxon Mobil Corp. oil-production joint venture in California has been pushed back to the first quarter of next year for U.S. regulatory approvals, the companies said on Dec. 8.
German asset manager IKAV in September agreed to pay $4 billion for Aera Energy, a Shell-Exxon business that produces nearly 25% of California's oil output. The firms have been shedding older properties to focus on more lucrative assets.
The sale, which originally was to close this month, is pending review by the Committee on Foreign Investment in the United States, which weighs national security risks of sales to foreign-owned companies. The closing is expected by the end of the first quarter next year, said Patrick Evans, a spokesperson for IKAV.
Financing has not been an issue and "IKAV is attracting strong interest from investors, and we are currently reviewing several additional market opportunities," said Evans.
Shell owns a 51.8% stake and Exxon the remainder of the 25-year-old Bakersfield, Calif., venture that pumped about 95,000 bbl of oil and gas per day last year. A Shell spokesperson confirmed the delay.
The two companies will split the $4 billion purchase price. Shell has said it faces a $300 million to $400 million impairment charge on the deal.
Recommended Reading
Oklahoma E&P Canvas Energy Explores Midcon Sale, Sources Say
2025-04-04 - Canvas Energy, formerly Chaparral Energy, holds 223,000 net acres in the Anadarko Basin, where M&A has been gathering momentum.
‘Trump Effect’ Stalls Hydrogen FIDs, Already Killing Projects
2025-04-03 - Billions of dollars in capex have been dedicated to hydrogen projects. But some projects have yet to reach final investment decisions amid continued uncertainty surrounding the Inflation Reduction Act and hydrogen production tax credits.
Appalachia, Haynesville Minerals M&A Heats Up as NatGas Prices Rise
2025-04-03 - Several large Appalachia and Haynesville minerals and royalties packages are expected to hit the market as buyer interest grows for U.S. natural gas.
RPC Acquires Pintail Completions to Expand Permian OFS Operations
2025-04-03 - RPC Inc. paid $245 million in cash and other considerations for the wireline service provider.
Pennsylvania City to Turn Coal-Powered Plant into Gas-Fired Data Center Campus
2025-04-03 - Construction on the Homer City Generating Station is expected to start in 2026.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.