Chevron Corp. has signed an agreement to acquire Anadarko Petroleum Corp., a transaction valued at US$33 billion. The move improves Chevron’s upstream portfolio and will put it in a better position with shale, deepwater and natural gas basins.
“This transaction builds strength on strength for Chevron,” said Chevron’s chairman and CEO Michael Wirth. “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our … position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths.”
The acquisition gives Chevron a wider presence in the Permian Basin, as well as create a 75 mile (120.7 km) corridor across the Delaware Basin. On the deepwater side, Chevron will gain an expanded network of deepwater infrastructure and improve its position in the Gulf of Mexico. On the LNG side, Chevron gains a resource base in Mozambique, Africa.
Wirth will remain the chairman and CEO of Chevron, which will also stay headquartered in San Ramon, California.