German asset supervisor IKAV in September agreed to pay $4 billion for Aera Energy, a Shell-Exxon enterprise that produces practically 25% of California’s oil output. The companies have been shedding older properties to give attention to extra profitable property.
The sale, which initially was to shut this month, is pending evaluate by the Committee on Foreign Investment in the United States, which weighs nationwide safety dangers of gross sales to foreign-owned firms. The closing is predicted by the top of the primary quarter subsequent yr, mentioned Patrick Evans, a spokesperson for IKAV.
Financing has not been a problem and “IKAV is attracting strong interest from investors, and we are currently reviewing several additional market opportunities,” mentioned Evans.
Shell owns a 51.8% stake and Exxon the rest of the 25-year-old Bakersfield, California, enterprise that pumped about 95,000 barrels of oil and gasoline per day final yr. A Shell spokesperson confirmed the delay.
The two firms will cut up the $4 billion buy worth. Shell has mentioned it faces a $300 million to $400 million impairment cost on the deal.
(Reporting by Gary McWilliams and Sabrina Valle in Houston, and David J. French in New York; Editing by Matthew Lewis)
