The China National Offshore Oil Corporation (CNOOC) has purchased a 33.3% undivided interest in Chesapeake Energy’s 600,000 net oil and natural gas leasehold acres in the Eagle Ford Shale in South Texas. The deal was CNOOC’s first to close in the U.S. since its failed 2005 Unocal bid.
Deal terms included $1.08 billion in cash, plus an additional $40 million payment adjustment at closing. CNOOC has also agreed to fund 75% of Chesapeake’s share of drilling and completion costs up to $1.08 billion, which Chesapeake expects to occur by year-end 2012.
Chesapeake CEO Aubrey McClendon, who also is a Land Report 100er, said , “We are very pleased to have partnered with CNOOC Limited in completing our fifth industry shale development transaction. 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 U.S. and the payment of very significant local, state and federal taxes.”