One of the world’s largest chemicals producers, UK-based INEOS, has entered US oil and gas production after agreeing to acquire assets of Eagle Ford from Chesapeake Energy for $1.4 billion, access to cheaper natural gas.
The deal marks INEOS Energy’s entry into the US onshore oil and gas market as it acquires 2,300 wells producing 36,000 barrels of oil equivalent per day (BOED) net. The acquisition, which includes production and exploration leases for 172,000 net hectares, is expected to close in the second quarter of the year, with an effective date of October 2022.
“The deal marks our entry into the US market and is another important step in INEOS Energy’s journey. Over the past two decades, onshore US oil and gas production has provided security of supply to the global market and competitive advantage to US industry .” Brian Gilvary, chairman of INEOS Energy, said in a statement.
Chesapeake Energy, for its part, is moving out of the Eagle Ford basin as it plans to focus on the premium assets and yields it has in the Marcellus and Haynesville shale gas basins and gain more exposure to the US LNG exports.
“Today marks another important step on our path to exiting Eagle Ford as we focus our capital on the premium rock, returns and catwalk of our Marcellus and Haynesville positions,” said Chesapeake president and chief executive officer Nick Dell’Osso in a statement.
“We are pleased to have raised a total of $2.825 billion to date and continue to be actively engaged with other parties regarding the remainder of our position in Eagle Ford.”
Last month, Chesapeake Energy agreed to sell about 377,000 net acres and about 1,350 wells in the Brazos Valley region of its Eagle Ford asset, along with related properties, plants and equipment, to WildFire Energy I LLC for $1.425 billion.
By Tsvetana Paraskova for Oilprice.com
More top results from Oilprice.com:
Leave a Reply