Chevron to become first oil major to enter Israeli market with $13-B deal for Noble Energy

Chevron Corp would acquire Houston-based oil and gas producer Noble Energy Inc. for about $13 billion, including $5 billion in stock, making it the first oil major to enter the Israeli oil market.

The value of the deal includes Chevron's assumption of Noble's debt.

The purchase expands Chevron's investments in US shale and gives it the Leviathan field, the eastern Mediterranean largest natural gas field, off Israel's shore.

With the oil price crash decimating shares of many energy companies like Noble, they have become attractive acquisition targets for those with resources.

The Noble acquisition is the first big energy deal since the coronavirus crisis shook the industry.

Chief Executive Officer Mike Wirth emphasized that Chevron was "apolitical" and "a commercial actor" in the region, mindful of political tensions between Israel and neighbors where Chevron also has businesses.

Israel's Energy Minister Yuval Steinitz called the acquisition "a tremendous expression of confidence" in its energy market.

According to Tom Ellacott, senior vice president at Wood Mackenzie, the Israeli assets will "rebalance" Chevron's portfolio towards gas and "provide a springboard" in the region.

Noble shareholders will receive about three percent of the combined company.