5/7/2019, 8:59 AM (Source: TeleTrader)
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Total to buy Anadarko's African assets for $8.8B

Total S.A. announced on Tuesday it reached an agreement with Occidental Petroleum to acquire Anadarko Petroleum's African assets for $8.8 billion. Total noted the transaction is subject to Occidental's purchase of Anadarko, as well as regulatory approval, and is expected to close in 2020. The deal would include participating interest of between 24% and 27% in assets in Algeria, Ghana and Mozambique, as well as exploration licenses in South Africa.

"Overall, these assets represent around 1.2 billion boe of 2P reserves, of which 70% is gas, plus 2 billion boe of long term natural gas resources in Mozambique. 2018 equity production was 96 kboe/d and is expected to grow to around 160 kboe/d by 2025," Total stated. "If completed, the acquisition of Anadarko by Occidental offers us the opportunity to acquire a world class portfolio of assets in Africa, further enhancing our position as the leading IOC on the continent," the oil giant's CEO Patrick Pouyanne stressed.

Earlier, Anadarko said Occidental's revised offer with an increased cash portion of the deal is "superior" to the already accepted bid from Chevron. Anadarko stressed it plans to terminate the Chevron deal in order to "enter into a definitive merger agreement with Occidental."

Breaking the News / NP