China lands multi-billion dollar deal in Texas oil and gas fields

[The Sushi Bandit]

Source: Current tv

The China National Offshore Oil Corporation (CNOOC) announced this week it is investing in US energy reserves located in south Texas, a move expected to draw little political opposition in the US.
China’s state-owned energy giant, CNOOC, has announced it is purchasing a 33.3 percent undivided interest in Chesapeake Energy Corporation’s oil and natural gas leasehold acres in the south Texas Eagle Ford Shale project. Price tag for the investment with Chesapeake is 2.16 billion dollars.
Consideration for the sale is $1.08 billion at closing. CNOOC also has agreed to fund 75% of Chesapeake’s share of drilling and completion costs up to the point where an additional $1.08 billion has been paid. Chesapeake expects that to occur by the end of 2012. Closing of the deal is expected to occur during the fourth quarter of 2010.
CNOOC, China’s largest producer of offshore crude oil and natural gas, is considered one of the world’s largest independent gas and oil exploration companies in the world.
Chesapeake controls approximately 600,000 net oil and natural gas leasehold acres in the Eagle Ford Shale project. The Oklahoma-based energy company anticipates the project will reach peak production of 400,000-500,000 barrels of oil equivalent within the next decade.
The financial transaction is seen by many as a means of China testing the waters for further inroads into US energy reserves as well as finding a way to alleviate China’s growing need for carbon-based energy. The International Energy Agency (IEA) announced in July that China became the worlds largest consumer of energy in 2009, surpassing the US.


Read more: http://current.com/news/92722705_china-lands-multi-billion-dollar-deal-in-texas-oil-and-gas-fields.htm

[JuniperLea]

1. Enter our Chinese Overlords, stage Right (Wing) eom

[Nihil]

2. Drill Baby Drill!

(And export it while *your* water & air quality deteriorates)

[Dont_Bogart_the_Pretzel]

3. +1

[leveymg]

4. China is grabbing up shale oil deposits on the assumption the US taxpayer will pay to subsidize the

Trans-Canada gas pipeline project that is slated to carry LPG from Alaska south to the largely Chinese-owned Shale Oil deposits in Alberta, Canada. Relatively clean LPG is there used to cook petroleum out of shale and sand deposits. The Chinese then ship the high carbon slurry to Asia and burn it in industrial plants. Sarah Palin earned her GOP wings by pushing a half-billion dollar taxpayer subsidy of the TCPP through the Alaskan legislature, a Bill she signed just a couple weeks before McCain unexpectedly chose her as his '08 running mate.

This is part of the same enormous deal with China that some, like T. Boone Pickens, are promoting as "U.S. energy-independence".

[PfcHammer]

5. All your oils are belong to us