Photo: Oil Shale Gas
China National Offshore Oil Company just bought a huge stake in an American shale oil project, according to China Daily.The deal, valued at $570 million, will see China buy a third of Chesapeake Energy Corporation’s Niobrara Shale project.
The Niobrara Shale formation stretches over Colorado and Wyoming, as well as Kansas and Nebraska. Chesapeake Energy’s position is in Wyoming and Colorado. If Chesapeake find any more oil in this region, CNOOC has the rights to 33.3% of what is found.
The area in questions is listed under the “Powder river and DJ basin” section of Chesapeake Energy’s most recent investor presentation (February 2011). As you can see, CNOOC are also a partner in Chesapeake Energy’s Eagle Ford shale project, in Texas.
Photo: Chesapeake Energy
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.