The management of US major Chevron has made abundantly clear in recent years that the firm’s key focus is the US Permian shale basin (MEES, 4 November 2016). If last month’s announcement of plans to near-triple Permian output to 900,000 boe/d by end-2023 (MEES, 15 March) was a doubling down on the red-hot Texas play, the 12 April announcement of the takeover of Anadarko was an all-in wager.
Chevron will effectively pay $50bn ($33bn plus debt) in a deal that has already been approved by both boards. The deal is set to close in the second half of 2019 subject to the approval of regulators and of Anadarko shareholders – their heads may yet be turned if Occidental, reported to have approached Anadarko’s board with a slightly higher bid than Chevron’s, decides to tempt shareholders with a hostile bid. (CONTINUED - 1564 WORDS)