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Global energy corporation Chevron announced that it has entered into a definitive agreement with Anadarko Petroleum Corporation to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $33 billion, or $65 per share.

According to local media, the Mozambican National Hydrocarbon Company (ENH), Omar Mitha, assured the shareholders that the sale of shares will not change the dynamics of the projects to exploiting liquefied natural gas (LNG) in the Rovuma Basin, north of Mozambique.

Mitha added that the engineering of the projects and agreements will also remain unchanged.

Meanwhile, Chevron’s chairman and CEO, Michael Wirth, said: “This transaction builds strength on strength for Chevron.

“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business.”

Wirth added: “It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.”

The transaction is expected to achieve run-rate cost synergies of $1 billion before tax and capital spending reductions of $1 billion within a year of closing.

“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Anadarko Chairman and CEO Al Walker.