Petrochemicals company Total has decided to not proceed with the acquisition of hydrocarbon exploration company Anadarko Petroleum Corporation’s assets in Ghana.
Total's decision was based on the "extraordinary market environment" and the lack of visibility about the group's prospects, as well as the non-operational nature of the Ghana assets.
“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,” says Total chairperson and CEO Patrick Pouyanné.
In August last year, Total and international oil company Occidental Petroleum Corporation entered into a purchase and sale agreement for Total to acquire Anadarko’s assets in Africa.
Under the terms of that agreement, Total and Occidental have since completed the sale and purchase of the Mozambican and South African assets.
The agreement provided that the sale of the Ghana assets was conditional upon the completion of the sale of assets in Algeria.
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.
Occidental last year acquired Anadarko in a transaction valued at $55-billion.