Chevron to buy Hess for US$53b in stock in latest oil mega merger

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HOUSTON: Chevron has agreed to buy Hess for US$53 billion (RM253.7 billion) in stock to gain a bigger US oil footprint and a stake in rival ExxonMobil...

Hess and Wirth appearing on CNBC to speak about Chevron’s deal to buy Hess Corp for US$53 billion all-stock deal, on the floor of the New York Stock Exchange on Monday. – Reuterspic

“This is great for energy security: It brings together two great American companies,” said Chevron CEO Michael Wirth, who has bulked up the company’s shale oil and gas holdings by acquiring US rivals PDC Energy and Noble Energy. The deal gives Chevron a 30% stake in the Exxon and CNOOC Stabroek oil block in Guyana, which is expected to triple to more than 1.2 million bpd by 2027.

CEO John Hess said the government of Guyana and Exxon would welcome Chevron’s entry into the country's oil fields.“We eventually talked about each other’s companies and the strategic fit,” Hess said. The deal follows Exxon’s rapid-fire deals since July for top US shale producer Pioneer and Denbury. Those US$64 billion combined transactions put Exxon atop US shale and cemented the firm’s nascent carbon storage business.

Once the it closes around the first half of 2024, the Hess CEO will join Chevron's board of directors.

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