ExxonMobil to quit Aera Energy joint venture in California

ExxonMobil said that its affiliates have agreed to divest all of the company’s interests in the Aera oil-production operation in California to Green Gate Resources E, a subsidiary of IKAV, for around $2 billion in cash with additional contingent payments to be made on future oil prices.

The deal involves the sale of a stake in Mobil California Exploration & Producing Asset Company. Additionally, ExxonMobil’s affiliates have signed a separate deal for selling an associated loading facility as well as a pipeline system.

Liam Mallon — ExxonMobil Upstream Company president said: “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.”

Mobil California Exploration & Producing Company has a stake of 48.2% in Aera Energy and a 50% stake in Aera Energy Services Company, which is a joint venture with Shell. It was created in 1997 and has operations across eight onshore fields.

Last year, Aera produced nearly 95,000 oil-equivalent barrels per day.

ExxonMobil said that the deal does not impact its branded network of nearly 500 independently owned retail sites across California.

The deal, which subject to regulatory approvals, is likely to be wrapped up in Q4 2022.