Total forms JV with Chesapeake; buys stake in Utica shale play

03 January 2012 09:11  [Source: ICIS news]

SINGAPORE (ICIS)--Total E&P USA on 30 December 2011 signed an agreement to enter a joint venture (JV) with Chesapeake Exploration and EnerVest, parent company Total said on Tuesday.

Total acquired a 25% share in both Chesapeake’s and EnerVest’s liquids-rich area of the Utica shale play, which is located across 10 counties on the eastern side of the US state of Ohio, the French energy group said in a statement.

Total has paid Chesapeake and EnerVest about $700m (€539m) in cash for acquiring those assets and will also be committed to pay additional amounts of up to $1.63bn over a maximum period of seven years for future capital expenditures on drilling and the completion of wells within the JV, it said.

Total, Chesapeake and EnerVest have also agreed to jointly develop the construction of the necessary mid-stream facilities for exports, it added.

($1 = €0.77)

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By: Samuel Wong

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