Shell Takes Control of Phillips’ Oil Leases
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Shell Oil Co.’s purchase of more than $250 million worth of Phillips Petroleum Co. assets has given Shell a sizable portion of the Huntington Beach oil field--Orange County’s most prolific and California’s third biggest oil producer, according to a Shell spokesman.
The deal, announced last week, includes leases to 3,540 offshore acres and 2,100 onshore acres. Together, the 862 wells produce about 16,000 barrels of oil a day. The properties also are a rich source of natural gas, the Shell spokesman said.
The offshore sites are leased to Shell by the state, and Shell leases the coastal property from a group led by Huntington Beach Co.
Phillips, which took control of the Huntington Beach leases when it bought Aminoil USA for about $1.6 billion in 1984, said it sold them to raise capital to help shrink its debt.
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