Shell has agreed to sell its 100% interest in Shell Onshore Ventures LLC which holds a 51.8% membership interest in Aera Energy LLC to IKAV for a total consideration of approximately US$2 billion in cash with additional contingent payments based on future oil prices, subject to regulatory approval. The transaction has an effective date of October 1, 2021 and is expected to close in 4Q22.
Zoe Yujnovich, Shell’s Upstream Director 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.”
Headquartered in Bakersfield, California, Aera Energy LLC is operated as an independent company.
While this transaction will end Shell’s Upstream position in California, Shell will remain active in the state through a variety of other assets and projects.
Read the latest issue of Oilfield Technology in full for free: Summer 2022
Oilfield Technology’s second issue of 2022 begins with analysis from Rystad Energy focusing on the upstream industry in Southeast Asia. The rest of the issue is dedicated to features covering advances in drilling, rig design, software and AI, corrosion and maintenance, artificial lift, flow control, and more.
Exclusive contributions come from Vink Chemicals, Archer, Taurex Drill Bits, Vysus, EM&I, SparkCognition, TÜV Rheinland Group, TGT Diagnostics, ChampionX, and Baker Hughes, as well as a guest comment from Patrick Long, Opportune.
Read the article online at: https://www.oilfieldtechnology.com/digital-oilfield/02092022/shell-to-sell-interest-in-aera-energy-to-ikav/