The Chevron Corporation group has reached an agreement to buy all of the shares representing the capital stock of the Anadarko Petroleum Corporation group, both of the United States, according to a statement issued to the market.
The Anadarko Petroleum group is an operator of a natural gas project in Mozambique and in a statement dated 5 March said that the final investment decision of the Rovuma Area 1 natural gas project is expected to take place in the first half of this year.
The deal, which values the Anadarko Petroleum group at US$33 billion or US$65 per share, will mean that each shareholder will receive 0.389 Chevron shares and US$16.25 in cash for each Anadarko share held.
Once the deal is completed, the Chevron group will have issued 200 million new shares, paid an estimated US$8 billion in cash and taken on a debt of US$15 billion.
The Chevron group also said it intends to sell assets worth US$15 billion to US$20 billion between 2020 and 2022, which will be used to reduce liabilities and deliver an additional dividend to shareholders.
The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos, with 15%, Mitsui E&P Mozambique Area1 Ltd(20%), ONGC Videsh Ltd. ( 10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)