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
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
EQT to Cut Workforce 15% Following Close of Equitrans Acquisition
2024-10-02 - EQT Corp. closed its $5.5 billion all-stock buy of Equitrans Midstream Corp. on Sept. 22.
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.