Chesapeake Energy Corporation, the nation’s second largest producer of natural gas, announced on Monday a multi-billion-dollar joint venture to develop its Barnett Shale holdings in North Texas with one of the world’s major oil and gas groups, France’s Total.
Total will pay $800 million in cash and provide $1.45 billion over the next six years toward the development of the Barnett Shale, which is the largest producing field in North America. Closing of the transaction, which is subject to regulatory approval, is anticipated by the end of January 2010.
Chesapeake, which is headquartered in Oklahoma City, has made similar deals with BP and Statoil with other portions of its energy portfolio. Chesapeake’s operations are focused on the development of onshore unconventional and conventional natural gas in the U.S. in the Barnett Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast, and East Texas regions of the United States.
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