Qatar v. Ecuador to kick off FIFA World Cup 2022™ on 20 NovemberRead more Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster TradeRead more Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more

Chevron agrees to buy Noble Energy for $5 billion

Print Friendly and PDF

Jul 21, 2020 - 09:11 AM

ANKARA (AA) – The United States’ second-biggest energy company, Chevron, announced its agreement Monday to buy Houston-based hydrocarbon exploration firm Noble Energy for $5 billion.

The California-based firm said in a statement that it will acquire all of the shares of Noble Energy in an all-stock transaction valued at $10.38 per share with Noble Energy shareholders receiving 0.1191 shares of Chevron for each Noble share.

Based on Noble Energy’s proved reserves at the end of 2019, the deal will add approximately 18% to Chevron’s year-end 2019 proved oil and gas reserves at an average acquisition cost of less than $5 per barrel, according to the statement.

“The acquisition of Noble Energy provides Chevron with low-cost, proved reserves and attractive undeveloped resources that will enhance an already advantaged upstream portfolio,” the statement read.

It added that “Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean.”

The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the fourth quarter of 2020.

Noble Energy has assets in the DJ Basin in the US state of Colorado, in the oil and gas resource-rich Permian Basin in the states of Texas and New Mexico, as well as resources off the coast of Israel in the Eastern Mediterranean, and Equatorial Guinea in West Africa. (Ovunc Kutlu)

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.