A battle between Chevron and Occidental Petroleum, which now includes billionaire investor extraordinaire Warren Buffett, to take control of U.S. independent producer Anadarko Petroleum, is fueling speculation about more deals to come.
But oil supermajor BP Plc CEO Bob Dudley Tuesday said his employer will not get involved.
BP acquired BHP Billiton’s U.S. shale assets for $10.5 billion in 2018, giving the company a major foothold in the Permian Basin and other plays. BP took over those operations last month.
“We’ve got our plate full. It’s (the BHP deal) the biggest acquisition we’ve done in 20 years,” Dudley told CNBC’s Brian Sullivan at the Milken Institute Global Conference in Beverly Hills, California. Kallanish Energy monitored the interview.
“So I think we’re fine, not on the hunt, but this doesn’t surprise me we’re starting to see some of the consolidation in the Permian,” he said.
Anadarko’s acreage in the Permian is widely seen as the company’s most valuable asset and the biggest prize for the winning bidder.
Buffett’s Berkshire Hathaway entered the fray Tuesday, committing $10 billion to Occidental if it’s the successful bidder for Anadarko.
Dudley said BP would not put in a bid to rival Chevron’s and Occidental’s offers for Anadarko.
Dudley expects oil and gas companies to continue striking deals and swapping acreage in order to string together continuous ownership in the Permian.
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