US ENERGY giant Chevron has announced a deal to buy Hess for $53bn (£44bn) as major oil producers make record profits amid surging prices.

The Chevron-Hess deal comes less than two weeks after Exxon Mobil said that it would acquire Pioneer Natural Resources for about $60bn.

Crude prices are up nine per cent this year and are hovering around $90 per barrel.

Chevron said the acquisition of Hess adds a major oil field in Guyana as well as shale sites in the Bakken Formation in North Dakota.

Chevron, which is paying for Hess with stock, said the deal will help to increase the amount of cash given back to shareholders.

Reuters

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