Anadarko in USD 2 billion acquisition
USA
THE WOODLANDS, September 13, 2016 – Anadarko entered a definitive agreement to acquire Freeport McMoRan Oil & Gas’ Gulf of Mexico deepwater assets for USD 2 billion, the American exploration and production firm announced yesterday.
The transaction was made effective on August 1, 2016, and is expected to close by the end of the year. The deal will more than double Anadarko’s ownership in the Lucius development from 23.8% to around 49% and will also add about 80,000 boepd to the company’s US Gulf production, bringing it to close to 155,000 boepd, 85% of which is oil.
Anadarko said it expects this move will generate USD 3 billion in free cash flow over the next five years at current commodity strip prices. The company added that it plans to use this cash flow to accelerate its investment in the USA’ Delaware and Denver basins.
The company plans to add two rigs in each of the two basins later in 2016 and increase production by more than double from the basins to a minimum of 600,000 boepd by 2021.
For mining giant Freeport-McMoran, this divestment marks a retreat from deepwater activity. The company had announced earlier this year that it would focus on its mining business.
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