Oil Giant Chevron To Buy Rival For US$33b

Chevron announced on Friday it would acquire smaller US rival Anadarko for US$33 billion in a deal that strengthens the oil giant's exploration and production holdings in its home market.

The cash-and-stock transaction is centered on Anadarko's properties in the Permian Basin in Texas and the Gulf of Mexico, two areas where Chevron is already a big player and where economies of scale can help drive value with suppliers and in key drilling and production operations.

The Permian is among the leading shale regions that have vaulted the United States back into the big leagues of global energy.

Anadarko also has a handful of overseas ventures, including a major liquefied natural gas project in Mozambique that Chevron said would help bolster one of its major global businesses.

Chevron's purchase of Anadarko at US$65 a share had competition from Occidental Petroleum, which bid US$70 a share but whose offer was hindered by "structural issues," CNBC reported, adding that Occidental was considering its options.

Chevron Chief Executive Mike Wirth said the deal "builds strength on strength for Chevron." (AFP)