The company “Chevron” concluded a deal to buy its counterpart “Hess” for 53 billion dollars, in the latest major acquisition in the US oil sector, as the industry bets on the continued demand for fossil fuels. The latest huge acquisition is among the merger deals concluded in the U.S. energy sector and comes less than two weeks after the announcement that Exxon Mobil will acquire the company “pioneer” in Texas to produce shale oil for an amount of about 60 billion dollars.
The “Chevron” agreement estimates the shares of “Hess” at 53 billion dollars, while the total value of the company with debts is 60 billion dollars, according to the statement.
The acquisition will further diversify Chevron’s interests, as Hess ‘ assets include an offshore exploration plan in oil-rich Guayana and a large shale oil project in North Dakota, as well as assets in the Gulf of Mexico and the Gulf of Thailand, “the company said.
Chevron Chief Executive Mike Wirth said the deal “puts Chevron in a position to enhance our long-term performance and improve our high-yield portfolio by adding assets globally”.
“Hess” CEO John Hess also welcomed the agreement.
Hess, who is expected to join Chevron’s Board of directors, said: “this strategic merger brings together two strong companies to create a leading integrated energy company.
“I am proud of our employees and what we have achieved as a company with a growth portfolio that is among the best in the sector, including in Guayana, the largest oil discovery in the world in the last ten years, and Bakken shale oil, where we are the largest producer of oil and gas,”he added.
Based on the agreement, “Chevron” will acquire 30 percent of the ownership of the equivalent of more than 11 billion barrels of oil expected to be produced from the field in Guayana, in addition to stocks in the Bakken shale oil field in North Dakota, according to the statement.
“Chevron” last year achieved a record profit of 35,5 billion dollars, and “Hess”, recorded a net profit of 2,2 billion dollars for the year 2022.
