Energy major Total SA has been told by Occidental Petroleum Corp. that it cannot acquire oil and gas assets in Algeria that were part of an $8.8 billion deal reached by the companies on Anadarko Petroleum's assets in Africa.
"Occidental officially told us that we cannot acquire the Algeria assets," the French company's CEO Patrick Pouyanne told analysts during a conference call after its first-quarter 2020 results.
"It releases part of the acquisition budget," Pouyanne said.
As part of its cash-raising to fund its purchase of Anadarko, Occidental agreed that Total would take over some of Anadarko's assets in a $8.8 billion deal.
The Anadarko assets in are in Algeria, Ghana, Mozambique and South Africa. The deal in Mozambique, which includes a giant LNG project has been concluded.
Algerian authorities had moved to block Total's acquisition of the assets.
Pouyanne told analysts the decision was based on the objection of Algiers, and Occidental will remain as operator unless it can find a way to sell it to Total.
On the assets in Ghana, Pouyanne said things were moving on with the deal, but declined to comment further.
Recommended Reading
FTC Oks Chevron-Hess Deal, Bans John Hess from Board
2024-09-30 - Federal regulators signed off on a blockbuster tie-up between Chevron and Hess Corp. but banned CEO John Hess from sitting on the Chevron board.
Venezuela Lost Citgo, But the Battle’s Not Over Yet
2024-10-04 - Amber Energy’s $7.3 billion purchase of Citgo fell well short of analyst’s valuations. PDVSA Ad Hoc expects to appeal the decision soon in its battle to protect its claim on Citgo.
Quantum Teams Looking for Acquisitions ‘Off the Beaten Path’
2024-10-14 - Blake Webster, partner at Quantum Capital Group, said the private-equity firm’s portfolio teams are looking to buy from sellers looking for cash buyouts, though not necessarily in the usual places.
Diamondback Subsidiary Viper Closes $900MM Midland Royalty Deal
2024-10-02 - Diamondback Energy’s Viper Energy closed the last of three acquisitions from Tumbleweed Royalty, owned by Double Eagle Energy’s founders, that together totaled about $1.1 billion.
SM Energy, NOG Close $2.6 Billion in Uinta Basin Acquisitions
2024-10-02 - SM Energy and Northern Oil and Gas have closed the acquisitions of XCL Resources and Altamont Energy, adding hundreds of locations and oil cuts of 86% to 87%.