Anadarko to buy Freeport’s Gulf of Mexico assets for $2b

Anadarko to buy Freeport’s Gulf of Mexico assets for $2b

Anadarko Petroleum (NYSE:APC) has announced it will buy deepwater Gulf of Mexico assets from Freeport McMoRan (NYSE:FCX) for US$2 billion.

Anadarko will take 91 drilling blocks in the Gulf of Mexico, doubling its ownership in the Lucius development to around 49%. It will also increase production by 80,000 barrels per day, with more than 80% crude.

Anadarko plans to generate $3 billion in additional cash, helping to financing additional investment in its Delaware and DJ basin assets.

The firm will also raise its full-year capital spending budget by $200 million and now expects to spend between $2.8 billion and 3 billion.

Richard Adkerson, president and CEO of Freeport McMoRan said: “We are pleased to announce this transaction, which brings our total 2016 asset sale transactions to over $6 billion, and reflects our commitment to debt reduction and our focus on dedicating our capital and management resources to our global leading copper business.”

Al Walker, Anadarko’s chief executive said the purchase will mostly add to the company’s crude output as a “catalyst for the company’s oil growth objectives.”