Chevron (CVX) agreed to buy Hess (HES) for $53 billion in an all-stock deal, in the latest blockbuster oil agreement amid broader industry consolidation.

Just earlier this month, ExxonMobil had also announced its acquisition of shale driller Pion🐈eer Natural Resources, potentially raising the stakes in the oil giants' ܫcompetition in the shale industry and the Guyana basin.

Guyana has become a significant oil producer, thanks in part to large discoveries by ExxonMobil, Hess, and China's CNOOC. Together, the companies extract 400,000 barrels per day from two offshore vessels and have plans to potentially develop up to 10 more offshore projects.

With its acquisition of Hess, Chevron will own a 30% stake in reserves of more than 11 billion barrels of recoverable oil and its equivalent resources in Guyana, as well as 465,000 acres in Bakken shale assets.

Chevron also said that with the synergy created through this deal, it expects to save around $1 billion in costs each year within a year of closing the transaction. The stronger portfolio created could allow Chevron to make $10 to $15 billion in before-tax profit by 20ꦡ28 through selling assets, according to a statement.

Shareholders will receive 1.025 Chevron shares per Hess share, at $171 per share, a premium of about 4.9% to Friday's closing price. Including debt, the total deal is valued at $60 billion.

Hess share🧸s were up 1.6% in early tradin🏅g as of 9:45 a.m. ET on Monday following the news, while shares of Chevron were down 2.5%.