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10 Pages

CNOOC acquires a 33.3% interest in Chesapeake's Eagle Ford acreage for US$2.16 billion

CNOOC acquires a 33.3% interest in Chesapeake's Eagle Ford acreage for US$2.16 billion

Report summary

CNOOC Ltd is to acquire a 33.3% stake in Chesapeake Energy's Eagle Ford Shale acreage. The deal is structured as a Joint Venture (JV), with a total consideration of US$2.16 billion. This constitutes an up-front cash consideration of US$1.08 billion, and a drilling capex carry of US$1.08 billion. CNOOC will acquire 200,000 net acres and around 1.33 billion boe of net unrisked resource. This equates to valuation metrics of US$10,800/acre and US$1.62/boe respectively. Our base case ...

What's included?

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  • CNOOC acquires a 33.3% interest in Chesapeake's Eagle Ford acreage for US$2.16 billion PDF - 1.14 MB 10 Pages, 8 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Valuation assumptions and methodology
  • Upsides and risks
  • Strategic rationale
    • CNOOC Ltd
    • Chesapeake
  • Oil & gas pricing and assumptions

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Location of Chesapeake Eagle Ford Acreage
    • Upstream assets: Table 1
    • Wood Mackenzie production assumptions (net entitlement basis)
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
    • Wood Mackenzie valuation sensitivities
  • Strategic rationale
    • Strategic rationale: Table 1
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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