Chinese buy third of Chesapeake South Texas field
- 10/11/2010 12:56:28 AM
China's state-owned offshore oil and gas company has bought a one-third interest in 600,000 acres that Chesapeake Energy leases in a South Texas oil and gas field.
CNOOK (SEE'-nook) Ltd. and Oklahoma City-based Chesapeake announced the deal worth up to $2.16 billion Sunday in the Eagle Ford Shale project between Laredo and San Antonio. A joint statement says CNOOC will pay Chesapeake $1.08 billion in cash at closing and share 75 percent of Chesapeake's drilling and completion costs up to another $1.08 billion.
Chesapeake expects to produce 400,000 to 500,000 barrels of oil equivalent per day at the project's peak.
The deal is the second in as many days for CNOOC. It announced Saturday that it has bought 2.6 million tons of liquefied natural gas from French utility GDF Suez.
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