New Delhi, Oct 23 (IANS): American oil giant Chevron Corporation announced on Monday that it has entered into a definitive agreement with Hess Corporation to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion.

Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share valued at $171 apeice. The total enterprise value, including debt, of the transaction works out to $60 billion.

The acquisition of Hess will add the gigantic Stabroek oil block in Guyana and the Bakken oil and gas shale block to Chevron’s lucrative portfolio.

The acquisition also shows oil and gas will continue to remain an important part of the world’s energy mix in the years ahead.

“This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” Chairman and Chief Executive Officer Mike Wirth said in the statement.