Friday, December 6, 2019Canada's Leading Online Business Magazine

Chevron Doles Out $33 Billion in Merger Plan

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CBJ — American petroleum company Chevron will buy Anadarko Petroleum for $33 billion in a cash-and-stock, enhancing its deep water exploration projects in the Gulf of Mexico.

While the combined company will remain far behind Exxon Mobil Corp. and Royal Dutch Shell in market capitalization, the merger will catapult Chevron from the fourth biggest producer among major drillers, to second, according to Wood Mackenzie.

With the acquisition, Chevron gets access to Anadarko’s liquid natural gas operations in Mozambique. The combined company will also control a 75-mile-wide corridor across the Delaware Basin, just beside the Permian Basin, a region bountiful with natural gas that has been exploited through shale drilling.

Chevron Corp. will keep its headquarters in San Ramon, California. Anadarko Petroleum Corp. is based in The Woodlands, Texas.

@CanBizJournal

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