[ad_1]
Occidental Petroleum and Anadarko yesterday signed a merger agreement giving the latest blow to the largest contract in the oil and gas sector since the acquisition of BG Group by Shell.
Hart Energy quotes a statement from Oxy's general manager, Vicki Hollub, who said: "This transaction further establishes Occidental as the world's leading operator in prolific oil and gas regions, with a 5% growth capacity of the production through investments in projects with industry. the main returns. "
Indeed, this agreement will consolidate and expand Western's position as the largest oil producer in the Permian after the incorporation of the Anadarko area, which represents approximately 600,000 gross acres in the Delaware Basin, which is part of of the largest shale deposit. It's largely that acreage that pushed Chevron to bid for its smallest rival, but the supermajor gave up the race yesterday, leaving Occidental all of the 600,000 acres as well as assets in outside the shale area.
Chevron had offered to pay about $ 33 billion US to Anadarko and have a debt of $ 15 billion US, 75% of the price to be paid in shares and the rest in cash. Chevron said at the time that Anadarko 's business value amounted to 50 billion US dollars.
However, Occidental, who had already tried to acquire Anadarko, returned to the scene with a higher percentage of the total to pay in cash, including 10 billion US dollars provided by Warren Buffett, which surprised many people as a unusual movement in the oil and gas sectors.
Initially, Oxy offered 50% of the $ 57 billion cash price and the rest in stock, but Anadarko was reluctant to accept this offer. Oxy then increased the transaction to 80% and obtained approval from the Anadarko Board of Directors. In the meantime, Chevron took $ 1 billion more from Anadarko's break-up tax and a higher stock price, with traders apparently not spending nearly $ 50 billion an acquisition.
By Irina Slav for Oilprice.com
More from Reading Oilprice.com:
[ad_2]
Source link