Shell Takes Control of Phillips’ Oil Leases
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.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
