CNOOC buys 33.3% stake in shale project from US's Chesapeake

17 February 2011 05:16  [Source: ICIS news]

SHANGHAI (ICIS)--China’s largest offshore oil producer CNOOC Limited has completed the purchase of 33.3% stake in a shale project in northeast Colorado and southeast Wyoming owned by US’s Chesapeake Energy Corporation, CNOOC said on Thursday.

CNOOC paid $570m (422m) in cash to get the stake in Chesapeake’s 800,000 net oil and natural gas leasehold acres in the Denver-Julesburg (DJ) and Powder River Basins in northeast Colorado and southeast Wyoming, CNOOC said on its website.

In addition, CNOOC has agreed to fund 66.7% of Chesapeake’s share of drilling and completion costs of up to $697m at the Niobrara shale project, which Chesapeake expects to take place by the end of 2014, CNOOC said.

“We look forward to accelerating the development 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 US and the payment of very significant local, state and federal taxes,” Aubrey K. McClendon, Chesapeake’s chief executive officer said.

CNOOC’s Niobrara shale project acquisition was the second shale project bought from Chesapeake following the Eagle Ford shale project finalised late last year.


To discuss issues facing the chemical industry go to ICIS connect

By: Judith Wang
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index