US, European Companies Strike Deals to Further Consolidate Oil Industry -- At a Glance

Large energy players in the U.S. and Europe are striking deals with smaller companies this year amid efforts to consolidate the oil industry. The moves are seen as a vote of confidence in the long-term resilience of fossil-fuel demand despite policymakers' growing efforts to promote low-carbon energy.

--Oil giant Chevron agreed to acquire medium-sized rival Hess in an all-stock deal valued at $53 billion. Chevron said the acquisition would upgrade and diversify its portfolio, and that Hess would add about 10% to its overall oil-and-gas production of about 3 million barrels a day.

--Exxon Mobil struck a nearly $60 billion deal to buy exploration-and-production company Pioneer Natural Resources, cementing its status as the dominant player in the U.S. fracking industry, now centered in West Texas, where Pioneer has more places to drill than almost all of its rivals.

--Italy's Eni and Norway's Var Energi agreed to acquire Neptune Energy's global and Norway businesses for around $4.9 billion including debt. The Italian oil major said the deal would support its goal to increase the share of gas in its portfolio by the end of the decade.

--BP and Abu Dhabi National Oil Co., also known as ADNOC, have made a nonbinding offer to acquire Israeli gas producer NewMed Energy, aiming to form a joint venture focused on gas development.

Write to Barcelona editors at [e-mail]

(END) Dow Jones Newswires

October 23, 2023 07:17 ET (11:17 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.