Report: Sinopec deal could signal move for Chesapeake assets in Texas

Chesapeake Energy Corp. may be getting closer to finding a buyer for its holdings in west Texas’ Permian Basin.

The cash-strapped oil and natural gas company has agreed to sell part of its Permian acreage to Houston-based EnerVest Ltd., but two larger pieces remain available.

Forbes writer Christopher Helman believes Chinese giant Sinopec could be the company to buy those properties.

Helman wrote on Wednesday that Sinopec’s interest in a Texas clean energy project could portend its plans to complete a deal with Chesapeake.

The proposed deal, detailed Tuesday by the Wall Street Journal, would involve capturing carbon dioxide emissions for coal-fired power plants then using them to bolster oil production in older fields.

Helman notes the Permian Basin, where Chesapeake holds about 1.5 million net acres, is home to more enhanced oil recovery operations than anywhere else in the world.

“A thought: wouldn’t it make just too much sense for Sinopec to be looking for ways to secure a long-term carbon dioxide supply before it announced a deal for Chesapeake’s Permian assets? Just speculation, but it fits.”

Chesapeake has said its Permian assets have drawn plenty of interest from prospective buyers, but officials have been coy about providing any details.

The company has been looking to raise cash to offset anticipated shortfalls in its operations budget.

Chesapeake has completed deals worth about $4.7 billion this year, including the sale of its stake in its former midstream subsidiary, which has been renamed Access Midstream Partners. The company hopes to raise an additional $7 billion this quarter, CEO Aubrey McClendon said in Chesapeake’s Aug. 7 earnings call.

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