US Permian shale takeover battle is a warning for OPEC

OPEC should take note of the $55 billion bidding war raging to buy US oil producer Anadarko. Chevron and Occidental are competing to acquire the unconventional driller. A deal could signal a wave of further consolidation across the Permian Basin and US oil patch, potentially with big implications for the Middle East dominated cartel. Chevron was on track to become the dominant player in US onshore shale before Oxy swept in this week with a bold $38 billion cash-and-stock counter offer, worth $76 a share, to buy Anadarko. Although the target company has ventured recently into developing gas projects in West Africa, its main attraction for giant petroleum predators is much closer to its home in Texas. Oxy’s offer is now viewed as the “superior proposal”, the company’s board said on Monday. The ball is now in Chevron’s court to improve its bid, or look elsewhere to boost its Permian footprint. “Anadarko’s Western midstream asset is attractive to both Oxy and Chevron, so that is one piece of the puzzle,” said Matthew Andre, energy analyst at S&P Global Platts Analytics in Denver. “But Anadarko’s presence in the Gulf of Mexico would complement both potential purchasers as well. In the Gulf… continue reading

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Source: CTRM Center

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