Algeria could likely take months to take a decision if Total can buy Anadarko’s assets in the country as officials are currently focused on the ongoing political transition after April’s ousting of President Abdelaziz Bouteflika, reported Reuters.
The latest development follows another Reuters report that claimed that French multinational integrated oil and gas company, Total, is ready to hold talks with Algerian authorities over its plans to buy Anadarko’s assets in the country.
During the company annual meeting in Paris, Total Chief Executive Patrick Pouyanne, on Wednesday, said the company is not worried by media reports that Algiers would block the deal. On Sunday, Algerian Energy Minister Mohamed Arkab said Algiers would block Total’s acquisition.
“We will meet Algerian authorities very soon,” Pouyanne told shareholders. “We are not worried. It is normal that authorities seek to have a dialogue with their principal partners and Total is one of the partners of Algeria.”
Notably, Occidental Petroleum is ready to sell Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa to Total for $8.8 billion on a condition that the U.S. oil company completes a takeover of Anadarko.
Pouyanne said Anadarko’s Africa assets will be a big boost for Total’s strategy to remain a leading oil company in Africa and the global liquefied natural gas (LNG) market. He said that the deal demonstrates the company’s capacity to be opportunistic and agile.
“Anadarko assets representing around 3 billion barrels of reserves resources which we’ll acquire for $8.8 billion are plainly at the heart of our growth strategy focused on our strengths,” he said. “Africa and LNG in Mozambique, Africa and deep offshore in South Africa and Ghana, and in Algeria.”
Pouyanne added that the acquisition deal would strengthen Total’s position as number two in the global LNG business and that it would have no negative impact on the company’s shareholder return policy. He said he is expecting that the acquisition will generate positive net cash flow from 2020, even if the price oil is less than $50 dollars per barrel.
