Anadarko Petroleum has entered into a definitive agreement to acquire the deepwater Gulf of Mexico assets of Freeport McMoRan Oil & Gas for $2bn.
The deal will double Anadarko’s ownership in the Lucius development to approximately 49 percent and Anadarko expects to generates an estimated $3bn of incremental Gulf of Mexico free cash flow over the next five years.
“This immediately accretive, bolt-on transaction strengthens our industry-leading position in the Gulf of Mexico and is a catalyst for the company’s oil-growth objectives, with quality assets being acquired at an attractive price to create significant value,” said Anadarko Chairman, President and CEO Al Walker.
“Additionally, the transaction expands Anadarko’s infrastructure in the Gulf, adds to our unmatched inventory of low-cost, subsea tieback opportunities, and bolsters optionality with new exploration prospects. The company’s Gulf of Mexico position, with the addition of these properties, will have net sales volumes of approximately 155,000 BOE per day, comprised of approximately 85 percent oil,” Walker added.
The transaction is expected to be completed before the end of this year.
