French supermajor Total has announced that it has reached a binding agreement with Occidental Petroleum Corporation to acquire Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa for a consideration of US$8.8bn
The transaction is contingent upon Occidental entering into and completing its proposed acquisition of Anadarko and to approval by the relevant authorities and is expected to close in 2020.
The assets to be acquired are:
Algeria: About 24.5 per cent participating interest and operatorship of blocks 404a and 208 (Hassi Berkine, Ourhoud and El Merk fields) in the Berkine basin in which Total already owns 12.25 per cent. These fields represented a gross production of 320,000 boepd in 2018.
Ghana: With 27 per cent participating interest in the Jubilee field and 19 per cent participating interest in the TEN fields. These fields represented a gross production of 143,000 bpd in 2018.
Mozambique: With a 26.5 per cent participating interest and operatorship in Area 1 where a 12.8mn tonne per year LNG project is largely derisked and close to sanction. Area 1 contains more than 60 tcf of gas resources, of which 18 tcf will be developed with the first two train project which is expected to come into production by 2024.
South Africa: Exploration licences, close to Total’s recent Brulpadda discovery.
Overall, these assets represent around 1.2bn boe of 2P reserves, of which 70 per cent is gas, plus two billion boe of long term natural gas resources in Mozambique.
Patrick Pouyanne, chairman and CEO, Total, said, “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.”
“We would be able to leverage our expertise in LNG by operating a major project in Mozambique and in Deepwater in Ghana and we would become an operator of major Algerian oil assets where we are already a partner. We have demonstrated the success of this strategy through the recent acquisitions of Maersk Oil,” he added.
“Total is committed to executing this transaction, should Occidental be successful in its offer to acquire Anadarko. The proposed transaction is a win/win for Total and Occidental. Total would get access to around more than US$3bn boe of resources and Occidental would be able to strengthen its post completion balance sheet by monetising immediately the international assets of Anadarko.”
