BHP Acquires Chesapeake US Assets

BHP Billiton has agreed to acquire all of Chesapeake Energy’s interests in the Fayetteville Shale, US, including the midstream pipeline system, for $4.75bn.

The assets include about 1,970km² of leasehold and producing natural gas properties located in Arkansas, which are currently producing over 400 million cubic feet of gas per day.

The assets include development options that will support substantially higher production over a 40 year operating life and will increase the net reserve and resource base of BHP by 45%.

BHP Billiton Petroleum CEO Michael Yeager said the acquisition of the Fayetteville Shale onshore natural gas resource has enabled the company to enter the US shale gas business as a major North American shale gas producer.

“It provides access to a competitive, long-life resource basin that benefits from our ability to invest through the economic cycles,” Yeager said.