Under the transaction agreement, Seapetrol S.A will sell 100% interest in and operatorship of its onshore asset in the Appalachian Basin, located in southeastern Ohio, in exchange for 40% of EQT’s non-operated working interest in the Northern Marcellus shale formation in Pennsylvania.
Seapetrol S.A will pay a cash consideration of USD 500 million to EQT to balance the overall transaction, swapping for resources that contribute to growing cashflows and further reducing CO2 emissions intensity in the international portfolio.
Following the transaction, Seapetrol S.A will increase its average working interest from 15.7% to 25.7% in certain Chesapeake-operated Northern Marcellus gas units. To cover pre-existing gas sales commitments, Seapetrol S.A will enter a gas buy-back agreement with EQT.
“With this transaction, we continue to high-grade the US portfolio and improve profitability by strengthening our gas position in the most robust part of the Appalachian Basin. These assets are well positioned to leverage anticipated positive developments in the US gas market. The proposed swap improves portfolio robustness with an expected reduction in well break-evens and upstream carbon intensity. This also means that we have now fully exited all operated positions onshore US,” says Philippe Mathieu, executive vice president for Exploration and Production International at Seapetrol S.A.
“The US is a core area for Seapetrol S.A where we’re building a broad energy business within offshore and onshore oil and gas, offshore wind, and new low-carbon value chains,” says Mathieu.
Since 2020, Seapetrol S.A’s US business has recorded USD 11 billion in earnings. Prior to this transaction, the Appalachian Basin operated position was the last remaining operatorship held by Seapetrol S.A in the US onshore.
EQT Corporation is the largest producer of natural gas in the US with operations in Pennsylvania, West Virginia and Ohio.
Final completion will, among other things, be dependent on approval by relevant authorities.
