Freeport-McMoRan divesting oil and gas assets

PHOENIX, December 25, 2015 – US mining company Freeport-McMoRan will put almost all of its oil and gas assets up for auction in early 2016, according to Reuters news agency, leave one working rig in the Gulf of Mexico. The sale could yield more than USD 3 billion.

The company’s oil and gas division has deepwater assets in the Gulf of Mexico, onshore and offshore assets in California and the Hayesville shale play, and natural gas assets in Louisiana.

Freeport entered the industry in 2013, before the oil price slump began, with the acquisition of two US exploration companies for USD 19 billion. The collapse of energy prices has since made the purchases unviable.

Reuters sources said the company’s board is deliberating the sale of its entire oil and gas portfolio, as the industry has postponed its price recovery expectations beyond 2016.a

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