Chesapeake Energy Corporation (NYSE:CHK) announced the completion of the sale of its assets in the Permian Basin on Monday.

According to the company, the southern part of Delaware Basin assets in the Permian Basin was purchased by SWEPI LP, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B), while the northern portion of the Delaware Basin was acquired by Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX). EnerVest Ltd, a company based in Houston, bought the Midland Basin portion of the Permian Basin.

Chesapeake

Chesapeake’s total net proceeds from the transactions were $3.3 billion, including preferential rights exercised by other parties. The company will receive $2.8 billion in cash during the closing of the deal. The company will receive the remaining amount after completing regulatory requirements, such as title, environmental, and other standard contingencies.

The company said, it will use the proceeds of the transaction to repay some of its debts and reduce it from $4 billion to approximately $1.2 billion by the end of October this year. Chesapeake plans to pay all of its expiring term loans by the end of 2012.

Chesapeake Energy Corporation (NYSE:CHK) is raising $13 billion to $14 billion by selling some of its assets to repay its debts, and to close its budget gap.

In September, Chesapeake Energy Corporation (NYSE:CHK) signed agreements with the three companies to acquire some parts of oil and gas fields in the Permian Basin. Aubrey McClendon, CEO of Chesapeake previously stated that the sale of its assets is a significant step in transforming the company’s asset base to a more balanced portfolio of oil, natural gas liquids, and natural gas resources and production.

The Permian Basin assets acquired by the companies produced approximately 21,000 barrels of liquids and 90 million cubic feet of natural gas per day, or approximately 5.7% of Chesapeake’s production during the second quarter of 2012.

Chesapeake Energy Corporation (NYSE:CHK) is the second largest natural gas producer in the United States. The company owned 1.5 million acres in the Permian Basin, which stretches across western Texas and southeastern New Mexico.

Jefferies & Company, Inc. and Goldman Sachs Group, Inc. (NYSE:GS) served as financial advisors to Chesapeake Energy Corporation (NYSE:CHK) in selling its Permian Basin assets.