Chevron Set to Acquire Anadarko Petroleum Company
Recent news that Chevron is planning to purchase Anadarko Petroleum Company has attracted attention throughout the Texas oil and gas industry. This acquisition makes sense for the company for a number of key reasons, one being the geographical location of the Anadarko drilling fields. Another point of interest includes Anadarko’s stake in Western Midstream Partners, which provides transport and storage services to the oil and gas industry. By ensuring that their combined staff has the right MWD training and skills, Chevron and Anadarko can further consolidate their dominance in the Permian Basin.
Paying a Premium Price
According to announcements by the company, Chevron paid $65 per share for Anadarko for a purchase price of $33 billion. Chevron also took on $17 billion in outstanding debt, which adds up to a total cost for the acquisition of $50 billion. This amounts to a significant outlay for the company and is the sixth largest such deal in the history of the oil and gas industry. The right MWD training will provide added fuel for the success of this major investment in its future production.
Connecting the Dots
The Anadarko acquisition will allow Chevron to connect its oil holdings in the Permian Basin to allow for more flexibility and increased extraction options. The combined fields will create a 75 miles wide corridor in the Permian Basin that will allow for longer lateral drilling. The right MWD technical support will ensure that these operations run smoothly and gain production for the expanded Chevron territories.
Increasing Midstream Position
Until its deal with Anadarko, Chevron had little or no position in the midstream sector. This part of the oil and gas industry deals with storage and transportation of oil and gas. Acquiring Anadarko gave Chevron a controlling interest and a 55 percent stake in Western Midstream Partners. This is a major force in midstream activities, including treating and transporting natural gas and oil products and water disposal used in the hydraulic fracturing process.
The experts at MWD Supply can provide you with the MWD training and technical support you need to achieve the greatest productivity in the field. We offer MWD rental services designed specifically to suit your needs and provide advanced solutions for drilling activities. Our team will work with you to determine the right options for your operations. Call us today at 281-664-0196 to request a catalog or a quote from our company. We look forward to the opportunity to serve you.