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19 Jun 2019, Stella Zlatareva, EMIS M&A Team

Occidental Petroleum inks deal to sell Anadarko's African oil and gas assets to Total for USD 8.8bn

It is a big deal within an even bigger one. The bidding war between Occidental and Chevron, a rare occurrence for large oil companies, ended with the latter winning the battle with its USD 38bn takeover offer for U.S.-based Anadarko Petroleum Corp. Thus, Occidental secured a lucrative prize – Anadarko's 600,000 acres of shale assets in the coveted Permian basin.

To partially cover payments for the cash-and-stock acquisition, Occidental agreed in May to divest Anadarko assets in Algeria, Ghana, Mozambique and South Africa in a USD 8.8mn deal with France’s Total. Unsurprisingly, the deal hinges on Occidental completing its takeover of Anadarko, which is expected to close in the second half of 2019.

The sale comes as a boost to Occidental’s plan to sell USD 10bn to USD 15bn worth of assets and reduces the overall integration demands of the Anadarko takeover.

As for Total, it reportedly set its sights on the African oil and gas production assets of Anadarko more than a year ago. Total is already operating a network of service stations in Mozambique and is now buying a 26.5% interest in a multibillion-dollar liquefied natural gas (LNG) project in the country. The remaining assets being acquired include a 24.5% stake and operatorship of blocks 404a and 208 (Hassi Berkine, Ourhoud and El Merk fields) in Algeria, a 27% interest in the Jubilee field and 19% interest in the TEN fields in Ghana, and exploration licenses in South Africa, close to Total’s recent Brulpadda discovery.

The group of assets represent about 1.2-billion barrels of oil-equivalent proven and probable reserves (2P). Original source: EMIS - DealWatch