Exxon, Shell Seek To Offload California Oil & Gas Joint Venture: Report

Exxon, Shell Seek To Offload California Oil & Gas Joint Venture: Report
  • Exxon Mobil Corp XOM and Shell Plc SHEL are in talks with a buyer to divest their Aera joint venture, Reuters reported citing three people with knowledge of the matter.
  • According to the Reuters report, JPMorgan Chase is the financial adviser for the possible divestiture and has been in talks with several potential buyers.
  • After a surge in energy prices, demand for oil assets is increasing, and listed companies are looking to offload their older operations to reduce greenhouse gas emissions. 
  • Exxon and Shell hinted at focusing on larger-scale oil fields and liquefied natural gas projects and are selling older properties to repay debt and investing in new areas.
  • According to its website, Aera is one of California's largest oil producers. It pumps 125,000 barrels of oil and 32 million cubic feet of natural gas daily. It generates about $1 billion a year in cash.
  • Any deal could potentially allow Exxon to hit a target of selling $15 billion in assets it set four years ago. The company wants to focus on Guyana, Brazil offshore, and liquefied natural gas projects.
  • Price Action: XOM stock is down 1.41% at $94.24, and SHEL shares are down 0.70% at $52.61 during the premarket session on the last check Thursday.
  • Photo Via Company

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