Total E&P USA said it has exercised its preemption right to acquire Chesapeake’s interests in the Barnett Shale operating area in North Texas.
The company has owned the remaining quarter in the Barnett assets since December 2009.
It means Total will become the 100% owner and operator of the assets.
Properties in the proposed transaction include 215,000 net developed and undeveloped acres, wells, leases, mineral, buildings and propoerties.
In 2016, net production is 65,000 barrels of oil equivalent per day.
As part of the deal Chesapeake will pay $334million to Williams, the gatherer and processer of 80% of the gas to Barnett assets to terminate its gathering agreement.
Total E&P USA will supplement Chesapeake’s payment with $420 million to Williams for a fully restructured, competitive gas gathering agreement, free of any MVC and with a Henry Hub-based gathering rate instead of a fixed per Mcf fee.
Total E&P USA will also pay $138 million to be released from three midstream capacity reservation contracts.