Global Processing

Chinese Company Paying $1.08 Billion for Stake in Texas Shale Gas Project

October 11, 2010
Bloomberg News reports, Cnooc Ltd. will pay $1.08 billion for a one-third stake in Chesapeake Energy Corp.’s Eagle Ford shale project in Texas. Hong Kong-based Cnooc plans to buy 33.3 percent of Chesapeake’s 600,000 oil and gas leasehold acres in Eagle Ford, the companies said in separate statements. The sale gives Cnooc its first energy asset in the U.S., five years after it dropped an $18.5 billion bid for Unocal Corp. amid political opposition. China’s third-largest oil company has spent at least $3.8 billion on overseas acquisitions in the past year as the nation’s energy demand surges.