Osaka Gas Acquires Sabine Oil & Gas
Japanese utility Osaka Gas has entered into a definitive agreement to acquire US shale explorer Sabine Oil & Gas Corporation, it said July 29.
“As this acquisition has enhanced Osaka Gas’ energy business portfolio in North America, the company intends to continue developing its three US core businesses consisting of Freeport LNG liquefaction project, IPP projects and Sabine’s shale gas project, to expand its income for coming years,” it said.
Sabine holds acreage in East Texas located in Harrison, Panola, Rusk, and Upshur counties, among others, totaling 175,000 net acres. This acquisition has given Osaka Gas the entire acreage position of Sabine, the company said.
Through this acquisition, Osaka Gas has also gained operatorship of the upstream business along with Sabine’s management and operation capabilities. “Integration of Sabine into Osaka Gas’ existing shale gas development business will enhance the efficiency and sustainability of the company’s US upstream business growth,” it added.
Last year, Osaka Gas agreed with Sabine Oil & Gas to acquire a stake in a shale gas project in Texas. The Japanese utility has a 30% working interest while Sabine has 55% stake.