Osaka Gas announced recently that it has entered into a definitive agreement with Sabine Oil & Gas Holdings to acquire 100% of the outstanding shares of its subsidiary, Sabine Oil & Gas Corporation (Sabine). Upon receiving required governmental permits and transaction closing, this marks the first time that a Japanese company purchases a U.S. based shale gas developer. As this acquisition has enhanced Osaka Gas’ energy business portfolio in North America, the company intends to continue developing its three U.S. core businesses consisting of Freeport LNG liquefaction project, IPP projects, and Sabine’s shale gas project, to expand its income for coming years.
Through this acquisition, Osaka Gas has also gained operatorship of the upstream business along with Sabine’s excellent management and operation capabilities. Integration of Sabine into Osaka Gas’ existing shale gas development business will enhance the efficiency and sustainability of the company’s U.S. upstream business growth.
