With the acquisition of a portion of Chesapeake Energy’s Eagle Ford shale holdings in south Texas for $1.4 billion, UK chemical specialists INEOS have entered the US onshore oil and gas market. INEOS Energy will acquire approximately 2,300 wells that produce net 36,000 BOE/D in accordance with the terms of the deal.
The acquisition, which includes production and exploration leases covering 172,000 net acres, is anticipated to be completed in the second quarter of 2023 and will take effect in October 2022.
According to Brian Gilvary, chairman of INEOS Energy, the deal marks their entry into the US market and is another significant step in the company’s journey. Brian Gilvary added that the United States’ onshore oil and gas production has provided global market supply security and a competitive advantage to US oil and gas industry over the past two decades. As they continue to position their business to meet the energy transition, they believe this acquisition will assist them in serving both internal and external customers.
Part of INEOS Energy’s plan to create a global integrated portfolio that is ready for the energy transition is the addition of Chesapeake’s assets and operations in south Texas.
In the past, INEOS Energy has focused its exploration and production efforts on both onshore and offshore oil and gas assets in the UK and Denmark’s North Sea. INEOS Energy has invested in low-carbon technologies like hydrogen and carbon capture and storage in recent years.
As part of its exit from the region, Eagle Ford has sold a second package to Chesapeake. The INEOS package includes property, plants, and equipment, as well as acreage in Dimmit, LaSalle, and McMullen counties that is located in the black oil portion of the project.
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