Chemical maker INEOS is entering US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale, south Texas for $1.4 billion.

The deal marks INEOS Energy’s entry as operator into the US onshore oil and gas market, as it acquires 2,300 wells, producing net 36,000 BOED.

The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to complete in Q2, with an effective date of October 2022.

The addition of Chesapeake's assets and operations in south Texas is part of INEOS Energy’s strategy to build a global integrated portfolio, fit for the energy transition, offering high-quality, energy solutions to its customers.

Brian Gilvary, Chairman, INEOS Energy said, "The deal marks our entry into the US market and is another significant step in the INEOS Energy journey. Over the last two decades, US onshore oil and gas production has provided security of supply for the global market and competitive advantage for US industry. We believe this acquisition will help us to serve our internal and external customers today as we continue to position our business to meet the energy transition.”