Total Scoops Anadarko African Portfolio

Oil and Gas Assets Valued at US$8.8 billion

French oil major Total has agreed on a contingent acquisition of U.S. explorer Anadarko's oil and gas assets in Africa, for US$8.8 billion, marking a positive outlook for liquefied natural gas operations in the continent.
Total agreed to the deal with Occidental Petroleum, which is in turn leading a bid to acquire Anadarko. The company’s African assets include fields in Algeria, Ghana, Mozambique, South Africa. Tthe deal will see Total become the second-largest international oil company LNG seller after Shell, and the fourth-largest LNG seller after Qatargas, Shell and Petronas.
“If completed, the acquisition of Anadarko by Occidental offers us the opportunity to acquire a world-class portfolio of assets in Africa, further enhancing our position as the leading IOC on the continent,” said Patrick Pouyanne, Total's CEO.
The deal signifies growing interest for LNG development in Africa by oil majors as risks associated with deepwater exploration continue to decline thanks to new technology.

Breakbulk Opportunity

Breakbulk operators serving the offshore LNG exploration sector have witnessed an uptick in demand in 2019 as a number of mega-projects have reached final investment decisions.
The latest deal from Total is likely to cement confidence in the sector, and may lead ot increased bidding for assets in the second half of the year.

"Its focus on LNG investment is part of a wider company shift to ‘cleaner fuels,’ " analysts at research consultancy Wood Mackenzie noted. "The group views its LNG portfolio as long term in nature, as a facilitator for monetising its own molecules, but has also become more active as an LNG trader in recent years.”

Aggressive Expansion

Assets covered in the deal include a 24.5 percent stake in blocks 404a and 208 in Algeria, a 27 percent stake in the Jubilee field in Ghana, exploration licences, close to Total’s recent Brulpadda discovery in South Africa and a 26.5 percent participating interest and operatorship in Mozambique where a 12.8 million tonne per year LNG project is largely derisked and close to sanction.

“The potential acquisition of Anadarko's stake in Mozambique LNG is representative of Total's ambitious and aggressive expansion of its LNG position. It acquired Engie's LNG business in 2018 and has a plethora of pre-FID opportunities which it is aiming to sanction within the next two years,” Wood Mackenzie said.

Headquartered in Delaware and Texas, the majority of Anadarko’s assets are in the U.S. with the company’s international operations accounting for only 14 percent of total sales volumes during 2018.