Total Scraps Purchase of Anadarko's Ghana Assets (Update)
(Clarifies that the Ghana deal was optional)
Total has backed out of a deal to buy Anadarko's assets in Ghana from Occidental Petroleum, it said on May 18. It told NGW that the option to buy the non-operated assets was part of the $8.8bn African asset sale agreement, if the Algerian assets deal could not be completed. "Oxy has notified us that the Algerian deal will not be completed because of the decision of the Algerian authorities." it said.
The French major said earlier that day in a statement that: "Given the extraordinary market environment and the lack of visibility that the group faces, and in light of the non-operated nature of the interests of Anadarko in Ghana, Total has decided not to pursue the completion of the purchase of the Ghana assets and, as a consequence, to preserve the group’s financial flexibility."
Total's transaction with Occidental also covered Anadarko's assets in Mozambique and South Africa. The French major closed its $3.9bn takeover of the company's Mozambique business, primarily consisting of a 26.5% operating stake in the Mozambique LNG project, in September last year. The failure to close the deal leaves cash-strapped Occidental with a big gap in its bank account.