Shell (LON:RDSB) is to exit its California joint venture with ExxonMobil as part of it carbon footprint reduction plans, Reuters reported today.
Shell is under pressure to reduce carbon emissions, with its own plans being thrown out by a court in The Netherlands, which told the oil major to speed up the process.
The joint venture, Aera, produces about 125,000 barrels of oil and 32mln cubic feet of natural gas each day or about 25% of California’s oil and gas production, which has some of the strictest emission controls in the US.
Shell has been steadily reducing its presence in the US and has sold refinery assets in Washington and Texas, having already disposed of its California oil refining operations, as it pivots towards renewable energy.
Reuters also said the company is considering a sale of assets in the Permian Basin of Texas.
Earlier this year, Shell announced a target to reduce its carbon footprint by at least 45% by 2035 and completely by 2050 from 2016 levels.
The Dutch court, however, ruled Shell has to comply with the Paris Climate Accord, which wants a 45% cut by 2030 from 2019 levels. Shell has said it intends to appeal the ruling.