Chesapeake Energy Joint Venture With Sinopec Is in Business
Chesapeake Energy closed on its Mississippi Lime joint venture with Chinese company Sinopec International Petroleum Exploration and Production Corp. (Sinopec) on June 28, Chesapeake announced today.
Sinopec paid Chesapeake $1.02 billion in cash for a 50% interest in 850,000 acres of shale gas property in northern Oklahoma. That field produced around 9,600 barrels of liquids, including oil, and 54 million cubic feet of natural gas each day during the first quarter of the year.
Chesapeake will conduct all leasing, drilling, completion, operations, and marketing activities of the joint venture. All costs for the project will be split between the companies.
In April 2012, Sinopec paid Devon Energy Corp. $900 million in cash for a one-third interest in five Devon exploration ventures in the U.S. Sinopec also agreed then to invest $1.6 billion in future Devon explorations.
Sinopec is the largest petroleum products manufacturer in China.
The article Chesapeake Energy Joint Venture With Sinopec Is in Business originally appeared on Fool.com.Dan Radovsky has no position in any stocks mentioned. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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