US energy giant Chevron said on Monday it has agreed to acquire mid-sized rival Hess in an all-stock deal. Value $53 billion,
The deal marks further consolidation of the energy industry, particularly in the United States, where smaller companies appear to be taking advantage of relatively high oil prices to join forces with larger players. The transaction follows Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, another sign of confidence among big industry players in the future of fossil fuels while policymakers Promote clean energy sources.
In a news release, Chevron said the acquisition would diversify its portfolio. Hess will add about 10 percent to Chevron’s total oil and gas production of about 3 million barrels per day.
Chevron Chairman and Chief Executive Mike Wirth said in a statement that the deal enhances the company’s operations “by adding world-class assets.”
Hess has a strong position in Guyana, where major oil discoveries have been made in recent years and where Chevron’s rival, Exxon, is the dominant operator. Hayes is also a leader in North Dakota’s Bakken shale field.
Hess Chief Executive John Hess is expected to join Chevron’s board.