Total Cancels Deal To Acquire Ghana Assets
Citing the market environment, Total SA has decided to end the previously reported deal to acquire Ghana assets from Occidental Petroleum Corp.
In May 2019, Total agreed to an $8.8 billion purchase of assets in Algeria, Ghana, Mozambique, and South Africa that Occidental acquired in its acquisition of Anadarko Petroleum Corp. Total and Occidental have completed sales of the Mozambique and South Africa assets.
The purchase and sale agreement provided that the sale of the Ghana assets was conditional upon the completion of the Algeria assets’ sale. Occidental has informed Total that, as part of an understanding with the Algerian authorities on the transfer of Anadarko’s interests to Occidental, Occidental would not be in a position to sell its interests in Algeria to Total.
In Ghana, the deal would have seen Total acquire 27percent participating interest in Jubilee field and 19percent participating interest in the TEN fields. These fields represented a gross production of 143,000 b/d in 2018.
Because the purchase and sale agreement expires in September, Total and Occidental have executed a waiver of the obligation to purchase and sell the Ghana assets, so that Occidental can begin marketing the sale of the Ghana assets to other third parties.