(Alliance News) - Royal Dutch Shell PLC plans to leave Aera Energy LLC, its oil and gas-producing joint venture in the US state of California with Exxon Mobil Corp, Reuters reported on Thursday citing four people familiar with the talks.
Reuters noted Shell has divested numerous carbon-intensive assets this year, as it shifts to renewables. The news agency previously reported that Shell is considering a sale of its assets in the Permian Basin in Texas.
https://www.reuters.com/business/energy/exclusive-shell-plans-exit-california-joint-venture-with-exxon-mobil-sources-2021-07-01/
Bakersfield-based Aera is focused on the San Joaquin Valley of California and has operations in Kern, Fresno, Monterey and Ventura counties. Formed in 1997 by Shell and ExxonMobil, Aera claims to be one of California's largest oil and gas producers, accounting for nearly 25% of the state's production with daily output of 125,000 barrels of oil and 32 million cubic feet of natural gas.
Shell A shares were up 1.6% at 1,469.40 pence in London on Thursday morning. Exxon shares closed up 0.8% in New York on Wednesday and were up 0.7% to USD63.52 in pre-market activity on Thursday.
By Tom Waite; thomaslwaite@alliancenews.com
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