Anadarko Petroleum Corp. (NYSE: APC) closed its $2 billion acquisition of Freeport-McMoRan Oil & Gas's deepwater Gulf of Mexico (GoM) assets, Anadarko said Dec. 15.

The deal doubles to about 49% Anadarko’s ownership in the Lucius development and adds production of 80,000 barrels of oil equivalent per day (boe/d), more than 80% oil.

Overall, Anadarko’s GoM production doubles to more than 160,000 net boe/d. Anadarko adds three operated facilities and bringing its total facilities in the GoM to 10.

The Lucius assets are expected to generate about $3 billion in incremental GoM free cash flow during the next five years at current strip prices. Anadarko will use that money to accelerate activity in the Delaware and Denver-Julesburg basins.

"As a result of closing this transaction, Anadarko now operates the largest number of floating production facilities in the deepwater GoM, which provides a competitive advantage to leverage this infrastructure into attractive new investment opportunities," said Al Walker, Anadarko's chairman, president and CEO.