News Desk

Anadarko in deal talks

NEW YORK

Anadarko Petroleum Corp, the US oil and gas exploration and production company that agreed this month to sell itself to Chevron Corp for $33 billion, decided to begin negotiations to sell itself to Occidental Petroleum Corp instead, according to people familiar with the matter.

The bidding war for Anadarko underscores the value of its assets in the lucrative Permian Basin of West Texas and New Mexico. The vast shale field holds oil and gas deposits that can produce supplies for decades using low-cost drilling techniques.

Anadarko’s board of directors has decided that Occidental’s $38 billion cash-and-stock bid could lead to a deal that would be superior to the one it has with Chevron, the sources said. Without such a formal determination, Anadarko’s contract with Chevron prevented it from engaging with Occidental.

Anadarko will now kick off negotiations with Occidental to see if it can finalize a deal, the sources said.

There is no certainty that Occidental, which was vying for Anadarko before Chevron clinched its deal, will be able to secure its own deal, the sources said.

If it does, Chevron will be given a chance to match the new deal.




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