Exxon Mobil Affiliates To Sell Stake in California Oil Operation to IKAV Capital Subsidiary

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 [e-mail]

(END) Dow Jones Newswires

September 01, 2022 17:00 ET (21:00 GMT)

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