French oil group Total is expected to become the new operator of the Rovuma Basin Area 1 block in Mozambique after Chevron Corp. gave up buying Anadarko Petroleum Corp., according to reports released in the United States.
Chevron Corp. (NYSE: CHA) decision, announced on Thursday in California, opens the way for Occidental Petroleum Corp to acquire Anadarko, following an offer that Chevron Corp said was “superior.”
In order to finance the offer of US$59 in cash and 0.2934 shares for each ordinary share of the Anadarko Petroleum group, higher than the initial US$38 cash offer and 0.6094 shares for each ordinary share of Anadarko Petroleum, Occidental agreed on the sale of Anadarko’s assets in Africa to French group Total.
These assets are scattered throughout South Africa, Algeria, Ghana and Mozambique, with the Anadarko Petroleum group operating in the latter country as the operator of the Area 1 block, which has proven natural gas reserves of 75 trillion cubic feet.
The agreement reached between the groups following the first offer and dependent on the purchase of Anadarko Petroleum stipulates that Total will have to pay US$8.8 billion to Occidental Petroleum Corp for the group’s African assets.
The Anadarko Petroleum group reported last Wednesday that the announcement of the final investment decision on this project in northern Mozambique will take place on 18 June in Maputo.
In a statement issued on Thursday in Houston, Anadarko Petroleum Corp. announced it had reached a definitive merger agreement with Occidental Petroleum Corporation. (Macauhub)