Occidental offers to sell Anadarko's African assets to Total for US$8.8bn

US oil and gas producer Occidental Petroleum has revised its proposal to acquire Anadarko Petroleum, offering US$76 per share, including US$59 per share in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock. Occidental Petroleum also entered into a binding agreement to sell Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa to Total for US$8.8bn, contingent upon Occidental entering into and completing its proposal to acquire Anadarko. The proceeds of the sale would cover a portion of the cash considerations to fund the proposed acquisition of Anadarko.

In April 2019, global oil and gas company Chevron entered into a definitive agreement with Anadarko Petroleum Corporation to acquire all its outstanding shared in a major stock (75%) and cash (25%) transaction valued at US$33bn ($16.25 in cash and 0.3869 share of Chevron common stock per share of Anadarko common stock). However, in late April 2019, Occidental Petroleum offered US$38 in cash and 0.6094 of a share of Occidental common stock to take over Anadarko, i.e. around US$76 per share of Anadarko, which represents a 23% premium to the US$61.62 per share value of Chevron’s pending offer as of market close on 3 May 2019. Occidental Petroleum has just modified the cash and stock ratio to improve its proposal.

Anadarko is involved in particular in the Mozambique LNG (MLNG) export project on the Afungi peninsula, located close to the Offshore Area 1 of the deepwater Rovuma basin, which holds estimated reserves of 75 Tcf (2,120 bcm) of recoverable natural gas reserves, equivalent to around 12 Gboe. The project will include two liquefaction trains with a combined capacity of 12.88 Mt/year and the operation start is expected for 2022-2023. The project is owned by Anadarko (26.5%), Mitsui (20%), ONGC (16%), Mozambique's oil company ENH (15%), Bharat PetroResources (10%), PTTEP (8.5%) and Oil India Limited (4%).