Chevron Corporation announced on Monday that it has entered into a definitive agreement with Hess Corporation to acquire all of the outstanding shares of Hess in an all-stock transaction valued at US$ 53 billion.
The total enterprise value, including assumed debt, of the transaction is US$ 60 billion.
Back in the late nineties, Amerada Hess with other companies including Shell was involved in drilling for hydrocarbons offshore the Falkland Islands.
The acquisition of Hess upgrades and diversifies Chevron’s already advantaged portfolio.
The Stabroek block in Guyana, leased by Hess is regarded as one of the most ,profitable properties producing high quality oil in the whole oil industry and is expected to continue to increase production well into the next decade.
Hess’ Bakken assets add another leading U.S. shale position to Chevron’s DJ and Permian basin operations and further strengthen domestic energy security.
Source St. Kitts Observer
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