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A pump jack does its work at an oil field in Kern County. Photo by Frank Lopez

published on March 2, 2023 - 2:56 PM
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A leading energy company in the Central Valley announced this week it is officially under new ownership.

Bakersfield-based Aera Energy is controlled by a partnership of the Canada Pension Plan Investment Board (CPP Investment) and German international asset management group IKAV.

Last September, IKAV, which has renewable energy expertise and manages U.S. conventional energy assets already, announced plans to acquire Aera Energy.

CPP Investments, headquartered in Toronto and one of the world’s largest institutional investors, agreed to purchase 49% of Aera Energy from IKAV.

German investor buying Aera’s Central Valley oil business for $4B

Aera Energy, which started as a joint venture between Shell and ExxonMobil, is the state’s second-largest oil and gas producer and accounts for nearly 25% of California’s production.

“We are aligned with CPP Investments in our commitment to achieving a smooth and sustainable transition to renewable energy,” said IKAV Chairman Constantin von Wasserschleben. “By delivering an energy solution at Aera that ties renewable growth with the safe and responsible operation of conventional energy assets, we are pursuing the right steps to balance California’s energy demand with its future climate goals.”

CPP Investments and IKAV intend to help Aera Energy balance its energy transition efforts with the need to continue meeting California’s conventional energy demands with investments in renewable energy to power Aera’s existing operations, according to a news release.

Aera Energy President Bartsch said the company will remain committed to the communities it operates in and to being a choice employer.

“We are excited about the IKAV and CPP Investments joint ownership of Aera Energy. It tells us they believe in the need to meet the energy needs of Californians for decades to come and are confident in our ability to deliver innovative solutions that will help the state meet its bold climate goals,” Bartsch.


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