French major TOTAL has taken the decision not to proceed with consummating the purchase of Occidental Petroleum’s stakes in Ghana.
Occidental had acquired Anadarko in early 2019 and subsequently entered into a Purchase and Sale Agreement (PSA) in order for TOTAL to acquire Anadarko’s assets in Africa. Under this agreement, TOTAL and Occidental have since completed the sale and purchase of the Mozambique and South Africa assets.
The PSA provided that the sale of the Ghana assets was conditional upon the completion of the Algeria assets’ sale. 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.
“Given the extraordinary market environment and the lack of visibility that the Group faces, and in light of the non-operated nature of the interests of Anadarko in Ghana”, says a company press release, “TOTAL has decided not to pursue the completion of the purchase of the Ghana assets and, as a consequence, to preserve the Group’s financial flexibility”.