Occidental Petroleum made an offer for $57bn to acquire Anadarko Petroleum, beating Chevron’s offer of $50bn.
If the deal goes ahead, they will pay half in cash and half in shares, Occidental would be the largest producer with 533,000 of oil barrels being produced each day.
Vicki Hollub, Occidental’s chief executive officer, said in an interview, “Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko’s assets not only in the Permian, but globally.
“Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realise significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.
“We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them.”
A spokesman for Anadarko said they intend to reply to Occidental later in the day.