CNOOC and Chesapeake announce second M&A deal

In its second deal with Chesapeake in less than six months, CNOOC agrees to pay up to $1.27 billion for a one-third interest in a shale-gas acreage in the US.

CNOOC will acquire a one-third interest in an 800,000 acre shale oil and gas lease in the US for a $570 million upfront payment and a phased payment of up to $697 million related to drilling costs. The lease is owned by Chesapeake Energy Corporation.

Hong Kong-listed CNOOC is 64%-owned by Chinese state-owned enterprise SOE China National Offshore Oil Corporation, which is China’s largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world.

The acreage is located in the Denver-Julesburg and Powder River Basins in Colorado and Wyoming respectively. CNOOC will acquire a 33.3% stake for $570 million,...

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