CNOOC Acquires Stake in Chesapeake’s US assets

CNOOC International has acquired a 33.3% undivided interest in Chesapeake Energy’s 800,000 net oil and natural gas leasehold acres, which are located in the Denver-Julesburg and Powder River basins in north-east Colorado and south-east Wyoming, US.

Under the $570m transaction, CNOOC will also fund 66.7% of Chesapeake’s share of drilling and completion costs up to $697m, which Chesapeake expects to occur by the end of 2014.

Chesapeake CEO Aubrey McClendon said the development of this large domestic oil and natural gas resource will result in the reduction of the country’s oil imports over time.

CNOOC CEO Yang Hua said the company will work closely with Chesapeake to fully explore the potential of the project and bring benefits to both parties, as well as other stakeholders.