Sinopec inks $1bn Chesapeake deal

Lime light: Sinopec hunting Mississippi Lime stake from Chesapeake

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News Wires

 25 February 2013 12:16 GMT

Chinese energy giant Sinopec and Chesapeake Energy of the US have inked a deal worth around $1 billion which sees the former grab a huge slice of a Chesapeake shale play.

The new joint venture will see Sinopec get a 50% share in a large portion of Chesapeake's Mississippi Lime properties for $1.02 billion in cash.

Earlier on Monday Reuters reported that Sinopec was eyeing the 50% slice with a deal imminent and worth $1.02 billion.

Later on Monday Chesapeake confirmed the deal, saying Sinopec is buying 50% in 850,000 net Chesapeake acres in the Mississippi Lime formation of northern Oklahoma.

Around 93% of the cash purchase amount will be received upon closing of the transaction, expected to be in the second quarter.

"All future exploration…

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