Oil and Gas News

Chevron to acquire Noble Energy

Chevron has secured an agreement to acquire Noble Energy for $US5 billion ($7 billion).

The acquisition of Noble Energy provides Chevron with low-cost, proved reserves and attractive undeveloped resources that will enhance an already advantage upstream portfolio.

Chevron advised that Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening its position in the Eastern Mediterranean.

The acquisition also enhances Chevron’s US position with de-risked acreage in the DJ Basin and 92,000 contiguous and adjacent acres in the Permian Basin.

Chevron chief executive officer and chairman Michael Wirth said the company’s strong balance sheet and financial discipline gave it the flexibility to buy assets during challenging times.

“This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources. Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow,” Wirth said.

“These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline. We look forward to welcoming the Noble Energy team and shareholders to bring together the best of our organisations.”

Noble Energy chairman David Stover said the combination with Chevron was an opportunity for the company to join an admired global, diversified energy leader.

“Over the last few years, we have made significant progress executing our strategic objectives, including driving capital efficiency gains onshore, advancing our offshore conventional gas developments and significantly reducing our cost structure,” Stover said.

“As we looked to build on this positive momentum, the Noble Energy board of directors and management team conducted a thorough process and concluded that this transaction is the best way to maximise value for all Noble Energy shareholders.”

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