The John Watson-led oil giant is taking all of EOG Resources' 30% stake as well as the entire holding of Encana Corp, also 30%, in the proposed Kitimat LNG project. As part of the deals it is also getting the stakes in the proposed Pacific Trail Pipeline (PTP) from the Canadian companies.
Chevron will then equalise its holdings with Apache Corp so that each will hold a 50% stake in Kitimat and PTP with Chevron to be operator of both.
Financial details were not disclosed by Chevron or EOG which later made a statement on the deal. The deal is set to close at the end of the first quarter, EOG said.
Kitimat is a proposed two train LNG development with a licence to export 10 million tonnes per annum of LNG.
Chevron vice chairman George Kirkland commented: "The Kitimat LNG development is an attractive opportunity that is aligned with existing strategies and will drive additional long-term production growth and shareholder returns.
"This investment grows our global LNG portfolio and builds upon our LNG construction, operations and marketing capabilities. It is ideally situated to meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in Asia, which are projected to approximately double from current levels by 2025."
Also on Monday Chevron agreed to buy 110,000 net acres in the Horn River basin from Encana, EOG and Apache as well as 212,000 net acres in the Liard basin from Apache. Following this Chevron and Apache will each hold 50% in the plays with the latter being operator.
EOG said it was letting go of approximately 28,500 undeveloped net acres in the Horn River basin with Encana saying it was putting up 32,500 net acres.
Commenting on the deals, EOG chairman and chief executive Mark Papa said: "While we still believe in the viability of the Kitimat project, our decision to exit is consistent with EOG's focus on domestic onshore crude oil production, which is generating more immediate reinvestment opportunities."
Gary Luquette, president of Chevron North America Exploration & Production, said: "This investment by Chevron captures significant resource and acreage in proven and emerging natural gas basins in Canada, and is a key opportunity to expand our overall North America exploration and production portfolio. It will enable our North America operations to play an increasingly important role in Chevron’s global growth."
