UK-based INEOS which is one of the biggest chemical manufacturers in the world has agreed to purchase Eagle Ford assets from Chesapeake Energy for $1.4 billion. As a result, INEOS will now obtain less expensive natural gas and will be capable of producing oil and gas in the United States.
Chesapeake Energy is planning to leave the Eagle Ford basin to concentrate on the lucrative resources and revenues it has in the Marcellus and Haynesville shale gas basins. This move will also allow it to increase its exposure to U.S. LNG exports.
Chesapeake Energy and WildFire Energy I LLC reached an agreement last month for the sale of roughly 377,000 net acres and 1,350 wells in the Brazos Valley area of the Eagle Ford asset, as well as any related real estate, buildings, and machinery, for $1.425 billion.
As part of the agreement, INEOS Energy becomes an operator in the U.S. inland oil and gas market and obtains 2,300 wells with a net daily production of 36,000 barrels of petroleum equivalent.
The deal, which covers 172,000 net acres of production and development licenses, is anticipated to close in the second quarter of this year and go into effect in October 2022.