Total buys stake in Chesapeake Energy's shale discovery in Ohio

French oil company Total SA purchased a minority stake in a section of Chesapeake Energy Corp.'s (NYSE: CHK) Ohio shale discovery for $2.32 billion.

Total will acquire a 25 percent stake in 619,000 acres spread across 10 Ohio counties, according to The Wall Street Journal. Chesapeake will receive $2.03 billion from Total, with Chesapeake’s previous partner, Houston-based EnerVest Ltd., collecting $290 million. About $610 million of Chesapeake’s take was paid when the parties closed the deal on Dec. 30, the article said, and the remaining $1.42 billion will be paid to develop the fields.

The investment pushes Chesapeake closer to its goal of reducing long-term debt by 25 percent while boosting production 30 percent. The company also expects to sell off $7 billion worth of assets and joint ventures in 2012, the article said.

Read more contracts and projects news

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


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...