Japanese company Osaka Gas has signed a definitive agreement to acquire 100% of the outstanding shares of Sabine Oil & Gas Holdings’ subsidiary Sabine Oil & Gas Corporation.
Reuters reported that the deal is valued at $610m and comes as Osaka Gas looks to expand its overseas business for future growth.
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It also marks the first acquisition of a US shale gas developer by a Japanese company.
The Sabine shale gas project is one of Osaka Gas’ three core US businesses comprising the Freeport LNG liquefaction project and independent power producer (IPP) projects.
Sabine owns acreage in the Harrison, Panola, Rusk and Upshur counties in East Texas, totalling 175,000 net acres with 1,200 wells producing 1.7 million tonnes of shale gas a year.
The acquisition of the outstanding shares has given Osaka Gas the entire acreage position of Sabine.
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By GlobalDataOsaka Gas will also be able to gain operatorship of the upstream business, along with Sabine’s operational capabilities.
The addition of Sabine into Osaka Gas’ existing shale gas development business will improve the sustainability of the latter’s US upstream business growth.
Osaka Gas said in a statement: “Under its long-term management vision ‘Going Forward, Beyond Borders 2030,’ which focuses on overseas energy markets as one of the growth areas, the Daigas Group aims to accelerate its endeavour to expand its energy businesses globally along the energy value chain from upstream to midstream and downstream businesses including LNG trading.”
In June 2018, Osaka Gas subsidiary OG East Texas signed an agreement with Sabine Oil & Gas and its subsidiary Sabine East Texas to purchase 35% of Sabine’s working interest in the gas properties.
