Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 17 pages
Data source: Published sources
Topics:
Chevron Corporation; Exxon-Mobil; Unocal Corporation; Consolidation; Oil and gas explorations; Caspian oil field; Unicracking process; CNOOC (China National Offshore Oil Corporation); CNPC (Chinese National Petroleum Company); British Petroleum; Upstream projects; Downstream projects; Barrels; Technological innovation; Global energy industry
Share a link:
https://casecent.re/p/67265
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
On 4 April 2005, Chevron Corporation, the second largest oil and gas company of the US, acquired Unocal Corporation (the ninth largest oil and gas company of the US), outbidding CNOOC (China National Offshore Oil Corporation). This acquisition increased the capacity of Chevron to 2.8 million barrels daily, from its previous capacity of 2.5 million barrels and made it the world?s fifth largest oil and gas company. The acquisition would strengthen Chevron?s competitive position in three critical energy provinces, East Asia and the Caspian region, the Middle East and the Gulf of Mexico. The Unocal acquisition was also expected to bring synergy to the existing projects of Chevron in Australia and Indonesia. It was one of the most controversial takeovers as both the Chinese and US governments intervened in the acquisition process. But analysts were sceptical whether the company would be able to leverage the acquisition fully, as its previous acquisitions failed to do wonders. Since Chevron still had extensive partnerships with CNOOC, the Unocal deal made the future prospects of the partnerships doubtful. The case deals with the acquisition process and Chevron?s growth strategy and offers scope for discussing: (1) how Chevron could leverage the acquisition in its growth process; (2) what problems it might encounter; and (3) how it planned to leverage the acquisition successfully.
About
Abstract
On 4 April 2005, Chevron Corporation, the second largest oil and gas company of the US, acquired Unocal Corporation (the ninth largest oil and gas company of the US), outbidding CNOOC (China National Offshore Oil Corporation). This acquisition increased the capacity of Chevron to 2.8 million barrels daily, from its previous capacity of 2.5 million barrels and made it the world?s fifth largest oil and gas company. The acquisition would strengthen Chevron?s competitive position in three critical energy provinces, East Asia and the Caspian region, the Middle East and the Gulf of Mexico. The Unocal acquisition was also expected to bring synergy to the existing projects of Chevron in Australia and Indonesia. It was one of the most controversial takeovers as both the Chinese and US governments intervened in the acquisition process. But analysts were sceptical whether the company would be able to leverage the acquisition fully, as its previous acquisitions failed to do wonders. Since Chevron still had extensive partnerships with CNOOC, the Unocal deal made the future prospects of the partnerships doubtful. The case deals with the acquisition process and Chevron?s growth strategy and offers scope for discussing: (1) how Chevron could leverage the acquisition in its growth process; (2) what problems it might encounter; and (3) how it planned to leverage the acquisition successfully.