Chevron will not increase its offer to Anadarko Petroleum

"Winning in any environment does not mean winning at no cost. Cost and capital discipline is always important, and we will not dilute our returns or erode the value of our shareholders to make an agreement." Chevron's chairman and CEO Michael Wirth said in a statement.

Chevron surprised the market on Thursday by announcing that it still intends to increase its repurchase program to $ 5 billion a year. Two weeks ago, Chevron leaders analysts said the increase was contingent on contractual settlement.

By taking control of Anadarko, Chevron stood to acquire the drill's large area in the Perm region stretching from western Texas to southeastern New Mexico. Chevron is a major player in Permian and plans to double its production from the pool by 2023.

The deal would also have combined Chevron and Anadarko's offshore operations in the Gulf of Mexico, a source of valuable cash flow. Chevron was also appreciated by Anadarko's liquid natural gas export project in Mozambique, which would have expanded its footprint in the growing LNG market.

But Chevron was overwhelmed by his much smaller competitor. After a higher bid, Occidental secured a $ 1[ads1]0 billion investment from Berkshire Hathaway and arranged to sell Anadarko's African business to French oil giant Total for $ 8.8 billion.