OSLO, Nov 11 (Reuters) - Norway's StatoilHydro is to pay
$3.375 billion for a stake in Chesapeake Energy's shale gas
assets, in a sign that cash-rich oil majors are gunning for the
assets of companies hit by the credit crunch.
StatoilHydro, the second-largest supplier of natural gas to
Europe, said it would pay Chesapeake $1.25 billion in cash and
pay $2.125 billion in drilling costs for a 32.5 percent stake in
the Marcellus prospects in the Appalachia region in the
northeastern United States.
"We are establishing a strong platform for further
developing our gas value chain business and growing our position
in unconventional gas worldwide," StatoilHydro Chief Executive
Helge Lund said in a statement.
Gas extracted from shale rock is considered unconventional
as the process is more complicated and expensive than extraction
from traditional gas reservoirs.
High gas prices and difficulties in securing access to
reserves has prompted international oil groups like Statoil,
Royal Dutch Shell and BP Plc to push into such areas.
StatoilHydro said the deal could add 2.5-3 billion barrels
of oil equivalent of reserves to its balance sheet in time.
"StatoilHydro's equity production from the Marcellus shale
gas play is expected to increase to at least 50,000 boepd in
2012 and at least 200,000 boepd after 2020," it said.
The deal, which covers 1.8 million acres of land, will ease
tight funding at Chesapeake, which labours under a heavy debt
burden.
Analysts have predicted other companies including BP and
Shell could try and take advantage of funding challenges at many
companies active in shale gas and related areas such as tight
gas and coal bed methane, to expand their asset bases.
The transaction is expected to close by year end.
Arctic Securities analyst Trond Omdal said the deal appeared
reasonable but that it would "reduce the free cash flow in the
short term".
Shares in StatoilHydro were down 0.9 percent at 132.30
crowns at 0919 GMT, outperforming a 2.7 percent slide on the DJ
Stoxx Oil and Gas Index.
StatoilHydro's growth strategy has focused on North America
in past years, with the Norwegian group strengthening its
position in deepwater Gulf of Mexico and offshore Alaska.
It has also bought a Canadian oil sands venture but recently
postponed a final investment decision until it gains more
clarity on tax rules.
StatoilHydro also exports liquefied natural gas to the U.S.
from its Barents Sea field.
StatoilHydro said Chesapeake planned to continue acquiring
leases in the Marcellus shale play and that it had the right to
a 32.5 percent participation in any such additional leasehold.
(Additional reporting by Richard Solem in Oslo and Tom Bergin
in London, editing by Will Waterman)
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