China's Sinopec closes on US shale joint venture with Chesapeake

01 July 2013 18:52  [Source: ICIS news]

HOUSTON (ICIS)--US Chesapeake Energy on Monday announced the closing of its Mississippi Lime joint venture with China’s Sinopec.

Chesapeake sold a 50% undivided interest in its 850,000-acre (344,000-ha) oil and gas play in northern Oklahoma for $1.02bn (€785m), the US natural gas producer said.

Future exploration and development will be shared, and Chesapeake will remain the operator of the joint venture to conduct all leasing, drilling, completion, operations and marketing activities.

“Chesapeake is pleased to have Sinopec as our partner in the Mississippi Lime play and we look forward to efficiently developing and growing this asset for many years to come,” said Doug Lawler, Chesapeake’s CEO.

Petrochemical companies are increasingly using shale gas as a cheap feedstock alternative for production, and Sinopec has been actively seeking to make in-roads into the US shale boom.

($1 = €0.77)

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By: Tracy Dang
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