Occidental Completes Mozambique LNG Sale, Other Key Divestments
(P&GJ) — Occidental Petroleum Corporation (Oxy) has announced completion of the sale of Anadarko's 26.5% stake in Mozambique's liquefied natural gas project to French major Total for $3.9 billion, the company said on Monday, along with the completion of other key divestment objectives following the recent close of its acquisition of Anadarko Petroleum in August.
"Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas," Total chairman and CEO Patrick Pouyanne said in a statement.
Anadarko led a liquefied natural gas project in Mozambique, but was replaced by Total after the French oil major agreed to buy Anadarko's African assets for $8.8 billion as part of the Occidental takeover.
Total will be the main operator of Mozambique LNG with a stake of 26.5%. ENH Rovuma Área Um, S.A. will own 15%, Mitsui E&P Mozambique Area1 Ltd will hold 20%, ONGC Videsh Ltd, Beas Rovuma Energy Mozambique Limited and BPRL Ventures Mozambique B.V. will all each have 10%, while PTTEP Mozambique Area 1 Limited will have 8.5%.
It added that nearly 90% of the Mozambique LNG production has already been sold through long-term contracts with key LNG buyers in Asia and in Europe.
The project is expected to come into production by 2024.
Oxy also announced the sale of its holdings in Plains All American Pipeline and Plains GP Holdings for $650 million.
In conjunction with Occidental’s second quarter 2019 earnings, Occidental announced a strategic partnership with Ecopetrol to develop Midland Basin acreage for $750 million in cash plus $750 million in carried capital. The transaction is expected to close before year end.
Occidental remains on track to deliver $10 to $15 billion of planned asset sales and remains confident in its deleveraging strategy.
“We have made progress quickly on our post-acquisition divestiture and deleveraging goals and remain confident in our ability to realize the full value of the Anadarko acquisition for our shareholders,” stated Vicki Hollub, President and Chief Executive Officer. “Upon completion of our recent initiatives, we will have reached approximately $10 billion of our targeted divestitures with more to follow.
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
Comments