Total to buy remaining 75% of Barnett Shale assets from Chesapeake

French oil and gas giant, Total SA today said that it is exercising its preemption right to buy Chesapeake's 75-per cent stake in the jointly held Barnett Shale, an operating area with production of around 65,000 barrels of oil a day in 2016.

Under the terms of the deal, Chesapeake will pay $334 million to Williams, the gatherer and processor of 80 per cent of the gas from Barnett Assets.

Total will pay $420 million to Williams to restructure the gathering agreement and a further $138 million to be released from three midstream capacity reservation contracts.

Total had acquired bought a 25-per cent stake in 2009 in Barnett Shale gas fields in north Texas for $800 million in cash, plus $1.45 billion toward the fields' development over six years.

With the preemption, Total E&P USA will be the 100 per cent owner and operator of the assets.

Properties in the proposed transaction include approximately 215,000 net developed and undeveloped acres, wells, leases, minerals, buildings and properties.

Associated 2016 net production is approximately 65 000 barrels of oil equivalent per day (boe/d).

José Ignacio Sanz, president & CEO of Total E&P USA said, ''As an operator, we look forward to working with all stakeholders, our leaseholders, the Dallas Fort Worth and other authorities, Williams and other midstream partners, and our customers. Increasing our stake in the Barnett shale supports Total's global strategy to be a leader in natural gas.''