NEW YORK, June 23: Anadarko Petroleum announced plans on Friday to buy rivals Kerr-McGee and Western Gas Resources in separate deals worth a total of $23.3 billion, creating the biggest independent US oil exploration group.

Texas-based Anadarko said it would acquire Kerr-McGee in an all-cash transaction for $16.4 billion plus the assumption of debt and other liabilities estimated at 1.6 billion.

It will buy Western Gas Resources Inc for $4.7 billion in cash, plus the assumption of $600 million in debt.

The move follows a recent consolidation in the oil industry, especially in the exploration area.

“We are creating a combined company with industry-leading positions in the deepwater Gulf of Mexico and the Rockies, two of the fastest-growing oil and natural gas producing regions in North America,” Anadarko chairman, president and chief executive Jim Hackett said.

“The core assets being acquired strongly complement Anadarko's existing properties, providing the scale and focus needed to deliver more robust, predictable and efficient growth.” Kerr-McGee, based in Oklahoma City, said its board approved the deal, which offered a 40 per cent premium to Thursday's share price.

Luke Corbett, Kerr-McGee chairman and chief executive officer, said, “The merger with Anadarko combines two companies with similar strategies and creates the largest US-based independent exploration and production company.” Anadarko will finance the acquisitions through a $24 billion, 364-day credit from UBS, Credit Suisse and Citigroup. Anadarko plans to use proceeds from asset sales, free cash flow from operations and the issuance of equity to reduce debt over the next 18 to 24 months. —AFP