Chesapeake in land deal with Sinopec for $1.02B

OKLAHOMA CITY (AP) — Chesapeake Energy says it is selling a stake in oil and natural gas-rich land in Oklahoma to Chinese oil company Sinopec for $1.02 billion in cash.

Sinopec, which is owned by the Chinese government and is the biggest refiner in Asia, is getting access to half of Chesapeake's 850,000 acres in the Mississippi Lime play in northern Oklahoma.

Chesapeake Energy Corp. said on Monday that it will get 93 percent of the money when the deal closes, which is expected in the second quarter. It will be paid the rest of the money after other conditions are met.

Chesapeake is the second-largest producer of natural gas in the U.S. Hurt by low natural gas prices, it has sold off billions in assets as it tries to pay off debt.