I Get By With Alittle Help From My Friends....

Dinar Outcast


You are not connected. Please login or register

China stakes claim to S. Texas oil, gas

View previous topic View next topic Go down  Message [Page 1 of 1]

1 China stakes claim to S. Texas oil, gas on Tue Oct 12, 2010 12:11 pm

Panhead

avatar
Admin
China stakes claim to S. Texas oil, gas
By Monica Hatcher - Houston Chronicle
Web Posted: 10/12/2010 12:48 AM CDT

HOUSTON — State-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields, potentially testing the political waters for further expansion into U.S. energy reserves.
With the announcement Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets, CNOOC lays claim to a share of properties that eventually could produce up to half a million barrels a day of oil equivalent.

It also might pick up some American know-how about tapping the hard-to-get deposits trapped in dense shale rock formations, analysts said.

As part of the deal, the largest purchase of an interest in U.S. energy assets by a Chinese company, CNOOC has agreed to pay about $1.1 billion for a chunk of Chesapeake’s assets in the Eagle Ford, a broad oil and gas formation that runs largely from southwest of San Antonio to the Mexican border.

CNOOC also will provide up to $1.1 billion more to cover drilling costs.

The deal represents China’s second try at making a big move into the U.S. oil and gas marketowing a failed bid five years ago to buy California-based Unocal Corp.

Intense political opposition over energy security concerns derailed that $18.4 billion deal. But analysts expect few political or regulatory hurdles to the CNOOC-Chesapeake deal.

“The climate is much more hospitable now,” said Juli MacDonald-Wimbush, a partner with Marstel-Day, an energy and environmental security consulting company in Fredericksburg, Va.

Amid low natural gas prices and a largely difficult drilling climate, she said highly liquid Chinese companies will find willing partners among onshore oil and gas companies hurting for capital to drill.

http://www.mysanantonio.com/business/local/China_stakes_claim_to_S_Texas_oil_gas_104753

View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum