CNOOC pays US$1.08 million in cash for interest in US oil project
October 28, 2010 | BY
clpstaff &clp articlesCNOOC International, a wholly-owned subsidiary of CNOOC Limited, has agreed to purchase a 33.3% undivided interest in Chesapeake Energy Corporation's…
CNOOC International, a wholly-owned subsidiary of CNOOC Limited, has agreed to purchase a 33.3% undivided interest in Chesapeake Energy Corporation's (Chesapeake's) Eagle Ford Shale project in South Texas, USA. When the transaction closes, the cash consideration for the sale will be US$1.08 billion. The deal is expected to be completed in the fourth quarter of this year.
Chesapeake is the operator of the project and will conduct all leasing, drilling, completion, operations and marketing activities for the project. Utilising the additional capital from CNOOC, the companies plan to develop net resource potential of up to four billion barrels of oil.
A trans-office Vinson & Elkins team advised CNOOC. The team was led by China-based partner David Blumental, Shanghai partner Jay Kolb and Houston-based partner Fielding Cochran. Chesapeake was represented by Commercial Law Group, Wilmer Cutler Pickering Hale and Dorr, and Wachtell Lipton Rosen & Katz.
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