Chevron Corporation has announced that its $4.1 billion acquisition of Texas-based Noble Energy, which operates two gas fields off Israel’s Mediterranean shoreline, was completed Tuesday morning (Houston time) following the approval of Noble’s shareholders. The acquisition was first announced this past July.
The deal provides Chevron with a 25 percent stake in the Tamar offshore gas field, and a 40 percent stake in Israel’s even larger, Leviathan offshore gas field.
“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits,” said Chevron Chairman and CEO Michael Wirth.
“With an industry-leading balance sheet and a track record of capital discipline, we believe we’re in a different place than others and can protect the dividend while driving long-term value.”
Israel’s Minister of Energy, Yuval Steinitz, was informed of the new status by Chevron president of Middle East and North Africa operations Clay Neff.
“I spoke today with Clay Neff who is responsible for Chevron’s operations in the Middle East and he informed me that the merger with Noble Energy had been completed,” Steinitz told the Globes business news site.
“The entry of an international oil major is huge news for the Israeli economy and opens up opportunities for investment in the high tech sector and startups in the field of energy.”
Steinitz said he also hopes Chevron will become involved in building the EastMed gas pipeline that is intended to carry natural gas from the Eastern Mediterranean to Europe.
Chevron, based in San Ramon, California, explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; and generates power.
“The acquisition of Noble Energy provides Chevron with low-cost, proved reserves and attractive undeveloped resources that will enhance an already advantaged upstream portfolio,” a statement said on the Chevron website. “Noble Energy brings low-capital, cash-generating offshore assets in Israel, strengthening Chevron’s position in the Eastern Mediterranean.”
Noble Energy’s assets also provide Chevron’s portfolio with a new US onshore unconventional position in the DJ Basin, complementary acreage in the Permian, a large-scale producing Eastern Med position with additional resource potential and other assets including interest in Noble Midstream Partners, Equatorial Guinea and Eagle Ford.
Noble Energy’s Chairman and CEO David Stover likewise found an advantage in the takeover: “The combination with Chevron is a compelling opportunity to join an admired global, diversified energy leader with a top-tier balance sheet and strong shareholder returns.
“We look forward to bringing together our highly complementary cultures and teams to realize the long-term value and benefits that this combination will deliver,” Stover added.