Jason Barton

Professional Information and Energy News

Total Will Buy Texas Gas-Field Stake

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There’s no doubt that these are extremely valuable resources that should be utilized. If we can be conservative in our energy use, we can hold off on exploiting resources like shale-gas, oil sands, and deep-sea resources, we can continue to develop the technology needed for extraction until it is much more efficient, economically, energetically, and ecologically.

JANUARY 4, 2010

French Oil Firm to Pay $2.25 Billion for 25% of Chesapeake Project as It Pursues U.S. Opportunities

By BEN CASSELMAN

French oil company Total SA will pay $2.25 billion for a stake in a Texas natural-gas field, in the latest sign that international energy giants are scrambling to catch up after missing out on the large U.S. gas discoveries of the past decade.

Total will get a 25% stake in Chesapeake Energy Corp.’s operations in the Barnett Shale, the biggest U.S. gas field by annual production. The discovery of the Barnett near Fort Worth, Texas, in the early 2000s launched a nationwide drilling boom that uncovered huge pockets of gas in Louisiana, Arkansas, Pennsylvania and elsewhere.

Getty ImagesA Chesapeake gas well in the Barnett Shale formation south of Fort Worth, Texas. International firms that largely abandoned the U.S. are now trying to cash in on gas discoveries there.

TOTAL

TOTAL

Under terms of the deal, which is expected to close by the end of the month, Total will pay Oklahoma City-based Chesapeake $800 million in cash and also will pay $1.45 billion of Chesapeake’s Barnett drilling costs over the next three years. The companies said they are also considering joint ventures in South Texas and in Canada.

Read the entire article here.

Written by Jason

January 4th, 2010 at 8:55 am