London (CNN Business) Chevron is paying $33 billion to acquire Anadarko Petroleum in a massive deal that will bolster its natural gas and shale operations.

Anadarko APC The cash and stock deal announced Friday valuesat $65 per share, 39% higher than the oil company's closing stock price on Thursday.

Although Chevron is well-known consumer brand, with eight refineries and nearly 8,000 gas stations, Anadarko is focused on exploration and production of of crude oil and natural gas. It sells its product to other companies that refine it.

But Anadarko has significant holdings, with the equivalent of 1.5 billion barrels of proved reserves. That makes it one of the world's largest independent exploration and production companies.

Chevron CVX CEO Michael Wirth said in a statement that buying Anadarko would solidify his company's position in shale-producing parts of the southern United States

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