BHP Billiton to buy Chesapeake Fayetteville assets

By OGJ editors
HOUSTON, Feb. 21
– BHP Billiton Petroleum has agreed to buy all of Chesapeake Energy Corp.’s interests in the Fayetteville shale gas play in Arkansas for $4.75 billion.

The company will acquire 487,000 net acres, from which production averages about 415 MMcfd of gas equivalent, and 420 miles of pipeline and gathering assets. It said the acquisition includes “development options that will support substantially higher production over a 40 year operating life.”

It’s BHP Billiton’s first investment in the US shale gas business. Chesapeake agreed to provide essential services related to the properties for up to 1 year, for which it will collect a fee.

BHP Billiton will become operator of the properties.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...