Occidental Petroleum Corp. announced May 18 its agreement to sell its assets in Ghana acquired from Anadarko Petroleum Corp. hit a snag, and the company will now market those assets to other companies.
Occidental acquired The Woodlands-based Anadarko in 2019 for $55 billion.
In a news release, Occidental said it entered into an agreement with energy company Total in August 2019 for Total to acquire the former Anadarko assets in Africa, of which the Mozambique and South Africa sales have been completed, according to Occidental.
However, the Ghana sale was contingent upon Occidental's sale of assets in Algeria, something Occidental learned it would not be in a position to do, it said in the release. Total therefore declined the Ghana purchase, according to the release.
"Total has informed Occidental that it is not interested in purchasing Anadarko's interests in Ghana in the current circumstances," the news release states.
According to the release, the Ghana assets are expected to function "economically well at low oil prices."
Occidental on May 5 announced a net loss attributable to common stockholders of $2.2 billion for the first quarter of 2020. Early this year, the company announced layoffs.
"As the world battles this pandemic, we are focused on preserving the health and safety of our employees and contractors while taking aggressive action to ensure our long-term financial stability," President and CEO Vicki Hollub said in a May 5 statement about its first quarter. "We have identified an additional $1.2 billion in operating and corporate cost savings and reduced our full-year capital budget to between $2.4 billion to $2.6 billion, while protecting the integrity of our assets."
Anadarko's former Ghana assets to go back on the market after Occidental deal hits snag
Occidental made announcements regarding the sale of Anadarko's assets in Africa on May 18. (Andrew Christman/Community Impact Newspaper)