Occidental Petroleum CEO Vicki Hollub says her company can squeeze the best results out of Anadarko Petroleum's wells in the top U.S. shale basin, making Occidental a better acquirer than Chevron.
Occidental on Wednesday announced a rival bid for Anadarko, which agreed to sell its business to Chevron in a deal valued at $33 billion earlier this month.
Hollub says 75 percent of Anadarko's value lies in its assets in the Permian Basin, the shale oil region underlying western Texas and eastern New Mexico. The Permian is the epicenter of a boom in U.S. oil production.
"We are the right acquirer for Anadarko Petroleum because we can get the most out of the shale," Hollub told David Faber on CNBC's "Squawk Box" on Wednesday. "We have a lot more experience there. We are performing really, really well, and what hasn't been talked about very much is that the upside in this deal is the shale play, is the shale development."
Chevron is also pitching itself as an ideal steward of Anadarko's Permian assets. The oil major says the deal stitches together a 75-mile-wide strip of continuous land in a sweet spot of the Permian, allowing Chevron to bring efficient, industrial-scale production to the shale field.
Hollub counters that Occidental is outperforming other drillers in the Permian, squeezing more oil from the region's shale rocks at lower cost.
This story is developing. Please check back for updates.
from Top News & Analysis https://cnb.cx/2IEbWGA
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