Exxon Mobil Affiliates To Sell Stake in California Oil Operation to IKAV Capital Subsidiary
September 01 2022 - 5:15PM
Dow Jones News
By Denny Jacob
Exxon Mobil Corp. said Thursday that its affiliates agreed to
sell their entire stake in a California oil production operation to
Green Gate Resources E LLC, a unit of IKAV Capital Partners
GmbH.
The operation, Aera Energy LLC, is one of California's largest
oil and gas producers, accounting for nearly a quarter of the
state's production, according to Aera's website.
Exxon Mobil said the transaction involves a share sale of Mobil
California Exploration & Producing Asset Co. Additionally,
Exxon Mobil said its affiliates have entered into a separate
agreement for the sale of an associated loading facility and
pipeline system.
Terms of the transaction weren't disclosed. The company said it
expected the deal to close in the fourth quarter.
"This sale is part of our strategy to continually strengthen our
industry-leading portfolio, focusing our investments in
low-cost-of-supply oil and natural gas to meet consumer demand and
create value for our shareholders," said Liam Mallon, president of
ExxonMobil Upstream Co.
Mobil California Exploration & Producing Co. holds a 48.2%
stake in Aera Energy and a 50% share of Aera Energy Services Co.
Aera Energy is a joint venture Exxon Mobil affiliates formed with
Shell in June 1997. In 2021, Aera produced about 95,000
oil-equivalent barrels per day, Exxon Mobil said.
The sale doesn't affect Exxon Mobil's branded network of about
500 independently owned retail sites in California, the company
said.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
September 01, 2022 17:00 ET (21:00 GMT)
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