French energy major Total said it had reached a binding agreement with Occidental to acquire Anadarko assets in Algeria, Ghana, Mozambique and South Africa for a consideration of $8.8 billion.
The firm said the transaction was contingent upon Occidental entering into and completing its proposed acquisition of Anadarko and approval of relevant authorities.
The deal is expected to close in 2020.
Total said the assets represented around 1.2 billion barrels of oil equivalent (boe) of 2P reserves, of which 70 percent is gas, plus 2 billion boe of long term natural gas resources in Mozambique.
It added that despite the capital investment in Mozambique LNG, the acquisition is expected to be free cash flow positive from 2020 even at a Brent price of less than $50 per barrel and to generate more than $1 billion a year of free cash flow from 2025 onwards after start-up of Mozambique LNG.
The firm confirmed its previously announced shareholder return policy from 2018 to 2020.
Latest Stories
-
Joe Lartey Sr: A voice that brought life to Ghana sports and beyond
2 mins -
Australians call for tougher laws on violence against women after killings
2 hours -
African Development Council establishes mission in Benin for Francophone countries
2 hours -
Okyeame Kwame reveals his secret to longevity in music industry
2 hours -
Youthful-looking 60-year-old woman qualifies for Miss Argentina contest
2 hours -
Ejisu By-Election: Campaign heats up as NPP holds final rally ahead of Polls on Tuesday
2 hours -
Rwanda plan: Irish government wants to send asylum seekers back to UK
3 hours -
Ice cubes now cost more than bread and milk in parts of Mali
4 hours -
Titanic gold pocket watch sells for £900,000
5 hours -
Elon Musk in China to discuss enabling full self driving – reports
5 hours -
Foreign Affairs Ministry advises against travelling to Northern Mali
6 hours -
After dating him for three years, I proposed to my husband
6 hours -
Beatrice ‘Bee’ Arthur tackles plastic pollution through artistic exploration
6 hours -
Hundreds turn out for Luv FM/Telecel Fitness Walk in Kumasi
6 hours -
Ghana Post launches Asantehene Commemorative Stamp
6 hours