Aera Energy — the Bakersfield-based child of two global oil giants — is on its way to being sold.

Formed in 1997, Aera Energy is the joint venture of ExxonMobil and Shell. Reuters reported Thursday the private oil driller is being sold to German investment group IKAV for $4 billion.

Terms have been struck on the sale to be completed through two separate transactions subject to regulatory approval, according to a news release from IKAV, which manages an energy infrastructure portfolio that includes wind, solar and carbon capture worth 2.5 euros, or $2.49 billion.

Aera will operate as normal in the Golden State, accounting for a quarter of the state’s total oil production. Including Kern County and Coalinga-area drilling operations in Fresno County, Aera produced an average of 95,000 barrels of crude oil a day in 2021, according to the news release.

“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,” said Constantin von Wasserschleben, IKAV chairman. “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.”

IKAV set out a goal for carbon neutral operations in the coming decades, with plans to deploy renewable energy to help power its conventional energy operations.

The deal is expected to close pending regulatory approval in the fourth quarter of 2022, Reuters reported.

Related story: State denies Valley fracking permits, citing health and climate concerns