The Occidental Petroleum Corporation group will sell Anadarko Petroleum’s oil and gas assets in Africa, notably in Mozambique, to French group Total for US$8.8 billion under a deal released on Sunday.
This agreement, however, depends on the purchase of Anadarko Petroleum by Occidental Petroleum Corporation, which is the target of interest shown by the Chevron Corporation group, with which a merger agreement had previously been reached.
The Occidental Petroleum Corporation is offering US$38 in cash per share and 0.6094 of its own shares for each ordinary share of Anadarko Petroleum, while Chevron Corp. offered US$16.25 in cash and 0.369 shares per ordinary share of Anadarko Petroleum.
The two proposals also include taking on Anadarko Petroleum’s estimated debt of US$15 billion.
Occidental Petroleum’s chief executive Vicki Hollub said in the statement that the sale of Anadarko Petroleum’s assets in Africa would help simplify the integration process of the two oil companies.
Hollub added that the agreement reached with the Total group is binding and that the divestment of African assets will take place simultaneously with the purchase of Anadarko Petroleum, or shortly thereafter.
Anadarko Petroleum is present in four countries in Africa – South Africa, Algeria, Ghana and Mozambique, in the latter as the operator of a proven natural gas project of 75 trillion cubic feet. (Macauhub)