Chevron submits non-binding proposal to acquire NBLX

US-based Chevron has submitted a non-binding proposal to acquire all of the publicly held common units representing limited partner interests in Noble Midstream Partners LP (NBLX) that is not owned  by the firm or its affiliates.

The proposal was submitted to the board of directors of Noble Midstream GP, the general partner of NBLX.

As per the proposal, Chevron intends to acquire the common units through a merger transaction in return for shares of common stock of Chevron, at a value of $12.47 per common unit.

Chevron expects the deal will align long-term interests by combining two integrated businesses and streamlining governance of the NBLX assets.

The NBLX assets primarily serve Chevron as its largest customer.

The agreement of definitive terms is subject to talks and approval by the NBLX board of directors.

Chevron stated that there is no assurance that any such approvals will be forthcoming, or a definitive agreement will be executed.

Last month, Chevron announced a Series C investment in San Jose-based Blue Planet, a start-up that manufactures and develops carbonate aggregates and carbon capture technology to cut down the carbon intensity of industrial operations.

With regard to this investment, Chevron and Blue Planet also executed a letter of intent to collaborate on potential projects and commercial development in important geographies to jointly advance lower-carbon opportunities.

Chevron VP of innovation and technology ventures president Barbara Burger said: “Carbon capture, utilisation, and storage, or CCUS, is viewed to be essential to advancing progress toward the global net-zero ambition of the Paris Agreement.

“This investment is made through our Future Energy Fund, which focuses on startups with lower-carbon technologies that can scale commercially, and we welcome Blue Planet to this portfolio.”

In July 2020, Chevron signed a definitive agreement to acquire all of the outstanding shares of Noble Energy in an all-stock transaction valued at $5bn. This deal was completed in November 2020.