US oil and gas giant Chevron recently bought back around 5 per cent of shares from independent energy company, Hess Corp, valued at approximately $2.3 billion.
As an integrated energy business, Chevron is considered today to be among the world’s largest corporations. The company produces crude oil and natural gas, but also supplies transportation fuels and petrochemical products.
As a petroleum refineries company, Chevron also sells a wide selection of lubrication products that range from coolant and engine oil to grease and gear oil.
The corporation also develops low-carbon activities for use in renewable fuels sector as well as hydrogen, among other innovative advancements. Although it is headquartered in California, Chevron has oil and gas fields all over the world, including Australia and Kazakhstan.
Based in New York, Hess is engaged in the production and exploration of natural gas and crude oil. It is well-known as a key producer on the shelves of Guyana, the Gulf of Thailand and the Gulf of Mexico, as well as the Bakken shale field sited in North Dakota in the US.
The Hess acquisition started six months ago. The deal is designed to complement Chevron’s standard buyback of the company’s own shares. Last year, Chevron bought back $15.2 billion worth of shares and plans to carry on with this programme after it completes its agreement with Hess. The US Federal Trade Commission has announced that it intends to approve the deal providing that specific conditions are met.
