Chevron to buy Energy Group, Noble for $13bn
Jennifer Ugwueke
Chevron is set to buy Noble Energy for $13bn including it’s liabilities in the oil and gas industry’s first big deal since the global pandemic sparked this year’s crude price collapse.
Under the terms of the all-share tie-up, which values the independent oil and gas producer’s equity at $5bn, investors will receive 0.1191 shares in the super major for each one they hold in its smaller US rival.
“Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times,” said Chevron chairman and chief executive Michael Wirth.
The purchase of the independent oil and gas producer is in line with Chevron’s strategic plan to focus on the international natural gas business and US shale production. The company is already one of the world’s largest natural gas producers.
Chevron will now become the operator of the giant Leviathan field and take over Noble’s other Mediterranean assets, including those in Cyprus. The deal comes despite the company’s wider investments in the Middle East, where it has a leading role in the Neutral Zone shared between Saudi Arabia and Kuwait, and a position in Iraq.