Osaka Gas announced on July 29, 2019, that it had reached an agreement with Sabine Oil & Gas Holdings to acquire 100% of the shares of Sabine Oil & Gas Corporation, a subsidiary of Sabine Oil & Gas Holdings that is located in Eastern Texas. The transaction is still waiting for the approval of the government permits. Upon the successful completion of the transaction, Osaka Gas will be the first Japanese company to purchase a U.S.-based shale gas developer.

Sabine Oil & Gas has a total of 175,000 net acres, with about 1,200 wells in East Texas, and an average annual LNG production of 1.7 million tons. In July 2018, Osaka Gas acquired 35% of the working interest of the gas field located on the eastern side, about half of the area owned by Sabine Oil & Gas. Since then, the wells on the eastern side have been producing more shale gas than initially expected. The acquisition will allow Osaka Gas to possess the entire gas field and to expand its upstream business in the U.S. Osaka Gas has previously invested in Freeport’s LNG liquefaction project and IPP projects. [1]

[1] https://www.osakagas.co.jp/company/press/pr_2019/1281330_40360.html