March 24, 2023

Brighton Journal

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The chemical giant enters US shale oil with a $1.4 billion acquisition

INEOS, one of the world’s largest chemical manufacturers, got into oil and gas production in the US next Purchase approval Eagle Ford assets from Chesapeake Energy for $1.4 billion, thus getting cheaper natural gas.

The agreement marks INEOS Energy’s entry as an operator into the US onshore oil and gas market, acquiring 2,300 wells producing 36,000 barrels of oil equivalent per day (boed). The acquisition, which includes leases for production and exploration on an area of ​​172,000 net acres, is expected to be completed in the second quarter of the year, with effect from October 2022.

“The agreement marks our entry into the US market and is another important step in INEOS Energy’s journey. Over the past two decades, US onshore oil and gas production has provided security of supply to the global market and a competitive advantage to US industry,” Ineos Energy President Brian Gilvary said in a statement.

Chesapeake Energy, for its part, is on its way out of the Eagle Ford basin as it plans to focus on the premium and yield assets it holds in the Marcellus and Haynesville shale gas basins and gain more exposure to U.S. LNG exports.

“Today marks another significant step on our path to exit Eagle Ford as we focus our capital on the premium rock, yield and runway of our Marcellus and Haynesville locations,” said Nick Del Oso, President and CEO of Chesapeake. statement.

“We are pleased to have secured a total of $2.825 billion to date and continue to actively work with third parties regarding the remainder of our Eagle Ford position.”

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Last month, Chesapeake Energy He agreed to sell Approximately 377,000 net acres and approximately 1,350 wells in the Brazos Valley area of ​​Eagle Ford assets, along with related property, plant and equipment, are sold to WildFire Energy I LLC for $1.425 billion.

By Tsvetana Paraskova for

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