Total, a French multinational integrated oil and gas company, said it had signed a deal with Occidental to acquire Anadarko assets in Algeria, Ghana, Mozambique and South Africa for a consideration of $8.8 billion.
The French energy major said the transaction was contingent upon Occidental entering into and completing its proposed acquisition of Anadarko and approval of relevant authorities.
The deal is expected to close in 2020 and Total said the assets represented around 1.2 billion barrels of oil equivalent (boe) of 2P reserves, of which 70 percent is gas, plus 2 billion boe of long term natural gas resources in Mozambique.
The oil and gas company revealed that despite the capital investment in Mozambique LNG, the acquisition is expected to be free cashflow positive from 2020 even at a Brent price of less than $50 per barrel.
The company also added that the deal will generate more than $1 billion a year of free cashflow from 2025 onwards after start-up of Mozambique LNG.