Chevron Buys Operating Interest in Kitimat Gas Project
The deal comes on the heels of several M&A transactions in the energy sector
Chevron Corp. (NYSE: CVX) will acquire a 50 percent operating interest in the Kitimat liquefied natural gas project and proposed Pacific Trail Pipeline for an undisclosed amount.
San Ramon, Calif.-based Chevron will acquire the interest through its Canadian subsidiary, Chevron Canada Ltd., which will also acquire a 50 percent interest in about 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia.
The other half of the project will be owned by Apache Corp.
The deal, which is subject to regulatory review, comes on the heels of many other deals in the energy sector. Private equity firm First Reserve Corp. closed its Ameriforge Group Inc. purchase on Dec. 21, Rosneft paid $56 billion for a Russian oil company and Spectra Energy Corp. (NYSE: SE) paid $1.49 billion for a pipeline system.
For more on energy M&A, see Mergers & Acquisitions' Special Report: Energy M&A on Fire in December.
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