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FILE PHOTO: The logo of the French oil company Total on a flag of the business and finance district of La Défense in Courbevoie, near Paris, France. May 16, 2018. REUTERS / Charles Platiau / Photo File
PARIS (Reuters) – France's energy giant Total announced on Sunday that it has signed a binding deal with Occidental to acquire Anadarko's badets in Algeria, Ghana, Mozambique and South Africa for a amount of $ 8.8 billion.
The company said the transaction was conditional on Occidental's conclusion of its proposed acquisition of Anadarko and approval by the relevant authorities. The transaction is expected to be finalized in 2020.
Total stated that the badets represented approximately 1.2 billion barrels of oil equivalent (BOE) of 2P reserves, 70% of which consisted of gas plus 2 billion BEP of long-term natural gas resources. Mozambique.
Despite the capital investment in Mozambique LNG, the acquisition is expected to generate positive free cash flow as early as 2020, even at a Brent price below $ 50 a barrel, and generate more than a billion $ 1 per year in free cash flow starting in 2025 after start-up. LNG in Mozambique.
The firm has confirmed its previously announced shareholder return policy from 2018 to 2020.
Reporting by Bate Felix, edited by Sybille de La Hamaide
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