MOSCOW (MRC) -- INEOS Energy is entering US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale, south Texas for USD1.4 bn, said the company.
The deal marks INEOS Energy’s entry as operator into the US onshore oil and gas market, as it acquires 2,300 wells, producing net 36,000 BOED. The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to complete in Q2, with an effective date of October 2022.
The addition of Chesapeake's assets and operations in south Texas is part of INEOS Energy’s strategy to build a global integrated portfolio, fit for the energy transition, offering high-quality, energy solutions to its customers.
Brian Gilvary Chairman INEOS Energy said, "The deal marks our entry into the US market and is another significant step in the INEOS Energy journey. Over the last two decades, US onshore oil and gas production has provided security of supply for the global market and competitive advantage for US industry. We believe this acquisition will help us to serve our internal and external customers today as we continue to position our business to meet the energy transition."
INEOS Energy incorporates all of the existing INEOS Oil & Gas assets. The business is committed to meeting society's energy needs through the current energy transition. INEOS Energy is actively producing and trading oil, gas, power and carbon credits, as well as investing in LNG, Hydrogen, and Carbon Capture and Storage.
We remind, INEOS has secured EUR3.5bn in financing for its Antwerp, Belgium, cracker project, set to have the lowest CO2 output of any unit in the continent. The plant, expected onstream in 2026, has the capacity to operate entirely on low-carbon hydrogen, with scope for the addition of a carbon capture facility and electric furnaces in future, according to INEOS. The estimated budget for the project, which INEOS made a final investment decision (FID) on last year, currently stands at EUR4.0bn