IKAV has agreed to acquire Aera Energy through two separate transactions with the joint venture subsidiaries of ExxonMobil and Shell respectively.
The transactions are subject to regulatory approval.
Aera is one of California’s largest oil and gas producers, accounting for nearly 25% of the state’s production.
In 2021, Aera produced approximately 95,000 barrels of crude oil equivalent per day. With operations centered in the San Joaquin Valley, most of Aera’s oil production originates from Kern County.
Aera will remain as the operator, and IKAV’s investment in Aera underlines that conventional energy will continue to play an essential role in California’s energy supply during the state’s transition to renewable sources.
IKAV said it was committed to driving forward Aera’s strategy to produce safe, responsible and affordable energy for all of California as well as to help achieve the statewide carbon neutrality goals.
Constantin von Wasserschleben, chairman of IKAV, said: “In addition to our long-term goal and commitment to renewable energy, we recognize the continued need for oil and gas and for these assets to be operated safely and responsibly to facilitate a smooth and sustainable transformation of our energy supply.
“We advocate a co-existence between renewable and conventional energy for decades to come. Aera fits our philosophy, and we are excited to be working with its exceptional team, who share our culture and long-term ambitions. Together, we have the expertise required to find innovative solutions to meet California’s energy demand as well as its future climate goals.”
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