International energy firms have aggressively sought a bigger foothold in the U.S. oil shale industry.
The Associated Press
NEW YORK — Royal Dutch Shell PLC said Friday it will buy East Resources Inc., a major owner of shale gas holdings in the northeast United States, for $4.7 billion from private investors.
Europe’s largest oil company said it will pay cash for East Resources, a Pennsylvania company that owns more than 2,500 oil and natural gas wells in the United States. It also controls 1.25 million acres of land, mostly in the energy-rich Marcellus Shale region that runs from New York to southwest Virginia.
Shell CEO Peter Voser said the acquisition fit with plans to “grow and upgrade” its holdings of shale gas in North America.
International energy companies have aggressively sought a bigger foothold in the U.S. oil shale industry, even with natural gas prices slumping to less than half of what they were in 2008.
Earlier this year, Japanese energy giant Mitsui Co. said it would pay $1.4 billion for a stake in Anadarko Petroleum Corp.’s shale assets. India’s Reliance Industries Ltd. also recently paid $1.7 billion for part of Atlas Energy’s shale gas deposits.
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