Kirkland & Ellis and Baker Botts have acted on the USD1.5 billion sale of natural gas production assets of US pipeline operating companies Williams and GEP Haynesville II to Japan’s power generator JERA, with Kirkland & Ellis advising GEP Haynesville II and Baker Botts representing JERA.
Kirkland & Ellis’ team included corporate partners Chris Heasley, Albert Jou and Luke Strother, along with debt finance partners Mary Kogut and Layton Bell, among others. Meanwhile, Baker Botts’ team comprised energy projects and transactions partners Gerry Morton and Rebecca Seidl Inglesby and income tax partner Jon Lobb, among others.
JERA, through its subsidiary JERA Americas, has reached an agreement with Williams and GEP Haynesville II to acquire 100% of their respective interests in the South Mansfield upstream asset located in western Louisiana’s Haynesville Shale basin. As part of the transaction, JERA has outlined a future investment plan to increase total production to 1 billion standard cubic feet per day.
This deal also marks JERA’s first entry into American shale gas production.
GEP will receive deferred monthly payments through 2029, based on a predefined development plan. Under a contract operating agreement, GEP will continue to operate and develop the upstream asset on a fixed-fee basis, ensuring operational continuity. Additionally, GEP will retain ownership and operation of its other Haynesville assets that are not part of this transaction.
The acquisition of the Haynesville assets is subject to customary closing conditions and regulatory approvals.
