CNOOC to buy 33.3-pct stake in U.S. Shale Gas Project

15:17, October 11, 2010      

Email | Print | Subscribe | Comments | Forum 

China National Offshore Oil Company Limited (CNOOC Ltd.) announced Monday it has agreed to pay 1.08 billion U.S. dollars for a 33.3-percent stake in the U.S.-based Chesapeake Energy Corp.'s 600,000 oil and natural gas leasehold acres in the Eagle Ford shale project.

CNOOC International Ltd., a wholly-owned subsidiary of Hong Kong-listed CNOOC Ltd., China's largest offshore oil and gas producer, would make the purchase and the price was subject to adjustment at transaction, CNOOC Ltd. said in a statement released Monday on its website.

Closing of the transaction was anticipated before the end of the year.

In addition, CNOOC Ltd. agreed to fund 75 percent of Chesapeake's share of drilling and completion costs until another 1.08 billion U.S. dollars has been paid, which Chesapeake expected to occur by the end of 2012, the statement said.

The companies planned to develop unproved resource potential of up to 4 billion barrels of oil equivalent over the next "several decades," the statement said.

As operator of the project, Chesapeake would conduct all leasing, drilling, completion, operations and marketing activities for the project, based in south Texas.

According to the agreement, CNOOC Ltd. would also have an option to acquire a 33.3-percent share of any additional acreage acquired by Chesapeake in the area and also an option to take a 33.3-percent interest in midstream infrastructure related to production, the statement said.

Fu Chengyu, CNOOC Ltd. chairman, said in the statement that as one of the world's largest independent oil and gas companies, CNOOC Ltd. had the will and ability to establish itself in this field by cooperating with a leading company such as Chesapeake.

"This transaction will provide the capital necessary to accelerate drilling of this large domestic oil and natural gas resource, resulting in a reduction of our country's oil imports over time, the creation of thousands of high-paying jobs in the U.S.," the statement cited Aubrey K. McClendon, chief executive officer of Chesapeake, as saying.

Headquartered in Oklahoma City, Chesapeake Energy Corporation is the second-largest producer of natural gas and an active driller of new wells in the U.S.

Source:Xinhua

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion