Total scraps plans of acquiring Occidental Petroleum’s assets in Ghana

French oil and gas giant Total has scrapped its plans to acquire the Ghanaian assets of Occidental Petroleum as part of a larger deal signed in August 2019.

As per the deal, Total under a purchase and sale agreement (PSA) was to acquire the assets of Anadarko Petroleum in Africa with the latter merged into Occidental Petroleum last year. Till date, Total and Occidental Petroleum have wrapped up the sale and purchase of the Mozambique and South Africa assets.

Under the PSA, the sale of the Ghana assets was subject to the completion of the Algeria assets’ sale. However, as part of an understanding with the Algerian authorities on the transfer of Anadarko Petroleum’s interests to it, Occidental Petroleum said that it will not be in a position to sell its interests in Algeria.

Total scraps plans of acquiring Occidental Petroleum’s assets in Ghana. Image credit: OpenClipart-Vectors from Pixabay.

Total said that considering the extraordinary market environment and the lack of visibility it faces, and in the wake of the non-operated nature of the interests of Anadarko Petroleum in Ghana, it has decided not to pursue the completion of the acquisition of the Ghana assets and, as a result, to preserve its financial flexibility.

Patrick Pouyanné – Total Chairman and CEO said: “This decision not to pursue the completion of the purchase of the Ghana assets consolidates the Group’s efforts in the control of its net investments this year and provides financial flexibility to face the uncertainties and opportunities linked to the current environment.”