Total Share Discussion Threads

[sarkasm] 12/6/2019 11:33

USDOLLAR
Consensus

Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 67,7 $
Last Close Price 54,2 $
Spread / Highest target 44%
Spread / Average Target 25%
Spread / Lowest Target 7,7%

[waldron] 11/6/2019 17:09

Brent Crude Oil NYMEX 62.33 +0.06%
Gasoline NYMEX 1.71 +0.70%
Natural Gas NYMEX 2.36 +0.30%
(WTI) 53.38 USD +0.13%


FTSE 100
7,398.45 +0.31%
Dow Jones
26,072.95 +0.04%
CAC 40
5,408.45 +0.48%
SBF 120
4,271.45 +0.48%
EuroStoxx 50
3,403.78 +0.53%
DAX Index
12,155.81 +0.92%
Ftse Mib
20,614.02 +0.63%

Eni
14.046 +0.33%


Total
48.27 +0.04%

Engie
13.07 -0.23%

Orange
13.85 +0.62

Bp
557 +0.27%

Vodafone
130.18 -0.17%

Royal Dutch Shell
2,542.5 +0.04%

Royal Dutch Shell
2,548 -0.08%

[waldron] 10/6/2019 17:00

Brent Crude Oil NYMEX 62.63 -1.04%
Gasoline NYMEX 1.71 -0.36%
Natural Gas NYMEX 2.35 +0.69%
(WTI) 53.82 USD -1.08%

FTSE 100
7,375.54 +0.59%
Dow Jones
26,170.08 +0.72%
CAC 40
5,382.5 +0.34%
SBF 120
4,251.21 +0.36%
EuroStoxx 50
3,385.9 +0.26%
DAX Index
12,045.38 +0.77%
Ftse Mib
20,476.2 +0.57%


Eni
14 +0.29%


Total
48.25 +0.95%

Engie
13.1 -0.87%

Orange
13.765 +0.29%

Bp
555.5 +0.67%

Vodafone
130.4 +0.38%

Royal Dutch Shell
2,541.5 +0.73%

Royal Dutch Shell
2,550 +0.77%

[waldron] 10/6/2019 07:46

Ineos inks deal with Aramco, Total for Saudi chemical plants
RIYADH, 21 hours, 42 minutes ago

Ineos, a leading manufacturer of petrochemicals, specialty chemicals and oil products, has signed agreements with state oil giant Saudi Aramco and French energy major Total to build three new plants in Jubail region of Saudi Arabia.

These world-scale plants, to come up in the Jubail 2 complex in Saudi Arabia, will produce the key building blocks for carbon fibre, engineering polymers and synthetic lubricants that are pivotal to economic growth in the region, said a statement from Ineos.

As per the MoU, Saudi Aramco and Total will construct a $5-billion petrochemical complex (Project Amiral) which will supply more than $4 billion of downstream derivatives and speciality chemicals units; the three Ineos plants will be part of them.

A leading UK multinational chemicals company headquartered in London, Ineos has 34 businesses, with a production network spanning 171 manufacturing facilities in 24 countries.

Ineos Nitriles, a part of Ineos Group Holdings, is the world’s largest producer of acrylonitrile and acetonitrile and leading supplier of nitrile-based chemicals.

A new state-of-the-art 425,000-tonne acrylonitrile plant, will use Ineos’ world leading technology and catalyst. It will be the first plant-of-its-kind in the Middle East when it starts up 2025.

Also the company is planning to build a 400,000-tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO). These units will be the most energy efficient in the world when they begin production in 2025.

The British chemical giant said the Saudi location will give it access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.

On the new deals, Chairman Jim Ratcliffe said: "This is a major milestone for Ineos that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total."

"We are bringing advanced downstream technology which will add value and create further jobs in the kingdom," he stated.

The project represents a continuation of Ineos’ growth strategy following the announcement of €3- billion ( ) investment into a new plant at Antwerp, £1-billion ( ) investment across the UK, acquisitions in China and capacity boosts in the US Gulf Coast, Alabama and Chocolate Bayou facilities.

Ineos Nitriles CEO Paul Overment said the global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre.

"This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world," he stated.

Ineos Oligomers CEO Joe Walton said: "We are one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally."

Ineos Oligomers already has a worldwide network of LAO and PAO production plants and bulk storage locations.

"The business produces a comprehensive range of speciality and intermediate chemicals derived from ethylene and isobutene," he added.-TradeArabia News Service

[waldron] 09/6/2019 15:11

UK chemicals firm inks $2bn deal with Saudi Aramco and Total

09 June 2019 3:14 PM By Indrajit Sen

petrochemicals plant downstream

Ineos plans to set up three chemicals plants in the Jubail downstream hub in Saudi Arabia’s Eastern Province

[maywillow] 08/6/2019 06:29

PGNiG to buy Total’s King Lear interest
HOUSTON, June 7
06/07/2019
By OGJ editors

PGNiG Upstream Norway said it will acquire Total E&P Norge’s 22.2% interest in King Lear gas and condensate field under development in the Ekofisk area of the Norwegian North Sea.

Operator Aker BP bought the remaining 77.8% interest in the field from Equinor last October for $250 million and plans to develop it as a satellite to Ula field (OGJ Online, Oct. 15, 2018).

King Lear is 50 km south of the three-platform Ula complex, which handles production from Aker BP’s Tambar and Tambar East satellites and third-party fields.

[waldron] 07/6/2019 16:57

Brent Crude Oil NYMEX 62.92 +2.03%
Gasoline NYMEX 1.70 +0.95%
Natural Gas NYMEX 2.34 +0.47%
(WTI) 53.46 USD +0.47%


FTSE 100
7,331.94 +0.99%
Dow Jones
25,987.98 +1.04%
CAC 40
5,364.05 +1.62%
SBF 120
4,236.09 +1.61%
EuroStoxx 50
3,376.99 +1.23%
DAX Index
12,045.38 +0.77%
Ftse Mib
20,346.36 +0.84%

Eni
13.96 +0.43%


Total
47.795 +1.17%

Engie
13.215 +1.73%

Orange
13.725 +0.73%

Bp
551.8 +1.53%

Vodafone
129.9 +1.50%

Royal Dutch Shell
2,523 +0.96%


Royal Dutch Shell
2,530.5 +0.56%

[grupo guitarlumber] 07/6/2019 15:40

Total gears up for North Sea gas hunt

Date created : 07/06/2019 - 13:36
French oil major Total is set to drill for natural gas in the Culzean field, deep below the cold waters of the North Sea
French oil major Total is set to drill for natural gas in the Culzean field, deep below the cold waters of the North Sea AFP/File
ADVERTISING

ABOARD CULZEAN PLATFORM, NORTH SEA (United Kingdom) (AFP)

Deep beneath the cold waters of the North Sea lies what French energy giant Total hopes will help feed Britain's voracious appetite for gas.

Total forecasts that the Culzean field, located more than 15,000 metres under the seabed halfway between Scotland and Norway, will cover five percent of Britain's gas requirements.
PUBLICITÉ

"There's still life" in North Sea production despite its dwindling energy reserves, Total's Culzean project manager Claus Vissing-Jorgensen told AFP on a recent trip to the Culzean site before drilling begins in the coming days.

Accessible by helicopter, Culzean is about 45 miles (70 kilometres) east of the Aberdeen, Europe's self-proclaimed oil capital on Scotland's northeast coast.

It comprises three vast and bright yellow platforms, one of which is a structure that runs all the way to the seabed and contains drilling equipment.

The other two are used for refining and living quarters for 180 people.

The seabed lies 90 metres (yards) below the platforms, but drilling continues for another 15,000 metres below that.

The gigantic platforms sprout from the sea almost like giant multi-storey buildings but with dark waves of water lapping at their foundations in strong winds.

Paris-based Total, which took over Culzean with a $7.5-billion purchase of the oil and gas exploration arm of Danish giant Maersk in 2017, is expected to drill for so-called "First Gass" soon.

Total has a 49.99-percent share of the Culzean field, with the rest owned by partners BP and Japan's JX Nippon.

If and when Culzean reaches optimum output by the end of 2020, Total says it will produce around 18 percent of Britain's total gas needs.

On Friday, the International Energy Agency (IEA) said that 2018 was a "golden year" for natural gas with global demand soaring, but environment and energy sector analysts say the gas boom could have dire effects on Earth's climate, as warnings of the need to slash fossil fuel use grow ever stronger.

- Revival -

Meanwhile, independent experts agree that the North Sea still had much gas left.

"We have seen quite an increase in production -- a 20-percent increase in (oil and gas) production over the past five years -- which is really quite remarkable for a mature basin," said Professor Paul de Leeuw, head of the Oil and Gas Institute at Robert Gordon University in Aberdeen.

He added that the "revival" of North Sea output was also the result of an improved UK corporate tax environment.

Authorities are keen to encourage more production in the North Sea basin, where operations support about 280,000 jobs both directly and indirectly according to industry organisation Oil & Gas UK.

That number is nonetheless half the amount of jobs provided during the industry's peak in 2014.

In addition, around half of the North Sea's precious energy reserves have already been extracted, according to industry estimates, making it one of the world's most mature basins.

Meanwhile despite a sizeable rebound in UK North Sea production over the last five years, current output remains far from peak levels enjoyed in the 1990s and 2000s, when it regularly topped 5.0 million barrels of oil and gas per day.

It stood at only 1.7 million barrels of oil equivalent per day (oepd) in 2018 and the amount is set to decline further, according to the Oil & Gas Authority regulator.

Total wants Culzean's gas production to reach between 60,000-90,000 barrels oepd by 2021 for a lifespan of at least 13 years.

The company's overall budget for the project stands at $4.0 billion.

In recent years however, US energy major ConocoPhillips and Anglo-Dutch group Shell have sold off North Sea oil and gas assets.

? 2019 AFP

[waldron] 06/6/2019 18:05

Brent Crude Oil NYMEX 60.62 -0.02%
Gasoline NYMEX 1.66 -0.42%
Natural Gas NYMEX 2.32 -2.52%

(WTI) 51.66 USD +0.21%


FTSE 100
7,259.85 +0.55%
Dow Jones
25,606.07 +0.26%
CAC 40
5,278.43 -0.26%
SBF 120
4,169.11 -0.34%
EuroStoxx 50
3,338.41 -0.08%
DAX Index
11,953.14 -0.23%
Ftse Mib
20,149.95 -0.03%




Eni
13.9 +0.23%


Total
47.24 +0.78%

Engie
12.99 +0.35%

Orange
13.625 -1.98%

Bp
543.5 +1.10%

Vodafone
127.98 -3.85%

Royal Dutch Shell
2,499 +1.56%

Royal Dutch Shell
2,516.5 +1.41%

[ariane] 05/6/2019 18:29

FRANCE24

Cyprus strikes $9 bln gas production deal

Date created : 05/06/2019 - 15:28


Cyprus will earn an estimated $9.3 bln over 18 years from exploiting its Aphrodite gas field under a renegotiated contract with Shell, US-based Noble and Israel?s Delek, the energy minister said Wednesday.

George Lakkotrypis told reporters that a re-working of the production contract ensures Cyprus receives an average yearly income of 520 million dollars over the lifespan of the gas field.


"We believe it is a good deal under the circumstances, it will allow the Republic of Cyprus to earn significant commercial revenues estimated at over $9 billion during 18 years of the well?s lifespan,? Lakkotrypis told reporters.

Lakkotrypis said under the new deal, the consortium was obliged to keep to a tight deadline to tap the gas reserves.

"Based on the development and production plan that we discussed, we expect the first gas to be extracted by 2024-25," he said, whereas the consortium previously had no obligation to stick to a timeline.

It was the "biggest development project" on the island with around 7.9 bln dollars invested in infrastructure.

Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain around 4.5 trillion cubic feet (127 billion cubic metres) of gas but it has yet to be commercialised.

The discovery of nearby Egypt?s huge Zohr offshore reservoir in 2015 has stoked interest that Cypriot waters hold the same riches.

Cyprus aims for natural gas to start flowing to an Egyptian LNG facility via pipeline.

It has pushed ahead with exploring for offshore energy resources despite the collapse in 2017 of talks to end the island's decades-long division.

That has angered Turkey, which has had troops stationed in the country since 1974 when it invaded and occupied its northern third in response to a coup sponsored by the military junta then ruling Greece.

Last month, Turkey sent a drillship inside Cyprus?s exclusive economic zone after announcing it would begin its own energy exploration.

In February, ExxonMobil and Qatar Petroleum discovered a huge natural gas reserve off the coast of Cyprus, holding an estimated five to eight trillion cubic feet.

Italy's ENI and Total of France are also heavily involved in exploring for oil and gas off Cyprus.

? 2019 AFP

[waldron] 05/6/2019 17:04

Brent Crude Oil NYMEX 60.45 -2.45%
Gasoline NYMEX 1.69 -2.20%
Natural Gas NYMEX 2.39 -1.20%
(WTI) 51.41 USD -3.07%

FTSE 100
7,220.22 +0.08%
Dow Jones
25,456.72 +0.49%
CAC 40
5,292 +0.45%
SBF 120
4,183.4 +0.55%
EuroStoxx 50
3,340.95 +0.12%
DAX Index
11,980.81 +0.08%
Ftse Mib
20,158.57 -0.35%



Eni
13.868 -1.07%


Total
46.875 -0.73%

Engie
12.945 +2.29%

Orange
13.9 +0.65%


Bp
537.6 -1.29%

Vodafone
133.1 -0.43%

Royal Dutch Shell
2,460.5 +0.06%

Royal Dutch Shell
2,481.5 +0.10%

[sarkasm] 04/6/2019 20:08

11th june 2019
Ex-Dividend date for the Remainder of the 2018 Dividend

[waldron] 04/6/2019 17:49

Brent Crude Oil NYMEX 61.81 -0.29%
Gasoline NYMEX 1.76 -0.73%
Natural Gas NYMEX 2.40 -2.40%
(WTI) 53.63 USD +1.53%

FTSE 100
7,214.29 +0.41%
Dow Jones
25,223.35 +1.63%
CAC 40
5,268.26 +0.51%
SBF 120
4,160.67 +0.49%
EuroStoxx 50
3,333.49 +1.10%
DAX Index
11,971.17 +1.51%
Ftse Mib
20,235.41 +1.82%


Eni
14.018 +1.43%

Total
47.22 +1.09%


Engie
12.655 +1.12%

Orange
13.81 -2.40%

Bp
544.6 +0.11%

Vodafone
133.68 +2.86%

Royal Dutch Shell
2,459 -0.55%


Royal Dutch Shell
2,479 -0.34%

[waldron] 03/6/2019 17:08

Brent Crude Oil NYMEX 61.81 -0.29%
Gasoline NYMEX 1.76 -0.73%
Natural Gas NYMEX 2.40 -2.40%
(WTI) 53.63 USD +1.53%


FTSE 100
7,184.8 +0.32%
Dow Jones
24,856.77 +0.17%
CAC 40
5,241.46 +0.65%
SBF 120
4,140.31 +0.53%
EuroStoxx 50
3,297.29 +0.52%
DAX Index
11,792.81 +0.56%
Ftse Mib
19,862.89 +0.31%



Eni
13.82 +1.77%

Total
46.71 +0.15%

Engie
12.515 +0.52%

Orange
14.15 +0.78%


Bp
544 +0.72%

Vodafone
129.96 +0.42%

Royal Dutch Shell
2,472.5 +0.47%


Royal Dutch Shell
2,487.5 +0.57%

[maywillow] 03/6/2019 11:13

03 Jun, 2019
Home
Small Caps News

Iain Gilbert
Sharecast News
03 Jun, 2019 10:43 03 Jun, 2019 10:43
Total SA launches operations at 25-megawatt Japanese solar power plant
ep parquesolaria 20190328132402

Energy firm Total SA has kicked off commercial operations at its 25-megawatt peak solar power plant on Japan's Honshu Island.
Total Sa
46.71
10:05 03/06/19
0.39%
0.18
Cboe FR 40
14,918.90
11:05 03/06/19
0.02%
2.42
Cboe Eurozone 50
12,075.85
11:05 03/06/19
0.00%
-0.20
Cboe Eurozone All Companies
12,898.29
11:05 03/06/19
-0.17%
-22.47
Cboe Europe 50
12,209.84
11:05 03/06/19
0.20%
24.06
Cboe Europe All Companies
13,107.17
11:05 03/06/19
-0.05%
-7.01
Cboe Europe All Companies Ex UK
13,745.36
11:05 03/06/19
-0.02%
-2.17
Cboe Europe Energy Sector
10,089.15
11:05 03/06/19
0.15%
15.10

Total's Miyako plant, completed two years after beginning of construction, will generate enough clean and reliable electricity to serve over 8,000 homes and has been designed to fully meet Japan's stringent earthquake-resistant building standards.

Jointly owned by Total Solar and Chubu Electric Power, one of Japan's largest electric power utilities, the Iwate Prefecture plant signals part of Total's ambitions to become a "responsible energy major".

Total told investors it plans to build "a profitable low carbon electricity business" and aims to see 15-20% of its sales mix coming from renewable sources by 2040.

Looking forward, the outfit intends to invest between $1.5bn and $2bn dollars per year in low carbon electricity from gas and renewables.

[waldron] 31/5/2019 17:30

Brent Crude Oil NYMEX 63.44 -2.89%
Gasoline NYMEX 1.80 -2.89%
Natural Gas NYMEX 2.48 -2.55%
(WTI) 55.05 USD -1.70%

FTSE 100
7,161.71 -0.78%
Dow Jones
24,935.15 -0.93%
CAC 40
5,207.63 -0.79%
SBF 120
4,118.56 -0.73%
EuroStoxx 50
3,280.43 -1.11%
DAX Index
11,726.84 -1.47%
Ftse Mib
19,820.15 -0.64%


Eni
13.58 -0.82%



Total
46.64 -0.43%

Engie
12.45 -0.40%

Orange
14.04 -0.04%

Bp
540.1 -0.22%

Vodafone
129.42 -0.40%

Royal Dutch Shell
2,461 -0.20%


Royal Dutch Shell
2,473.5 -0.28%

[grupo] 31/5/2019 08:51

BizNews
Sign In Try BizNews Premium



Royal Dutch Shell plc
Shell follow Total into SA’s relatively unexplored waters seeking oil
30th May 2019 by Editor

By Paul Burkhardt

(Bloomberg) – Royal Dutch Shell Plc is planning to acquire an oil-block stake in a second deal in South Africa’s relatively unexplored waters, months after a major discovery by Total SA boosted the country’s hydrocarbon prospects.

Shell has applied to take a stake in a license owned by OK Energy, located in deep waters off South Africa’s west coast, according to Petroleum Agency South Africa. “We have indeed received an application which is awaiting ministerial approval,” the regulator said in a reply to questions about the block.

The Anglo-Dutch major exited its Orange Basin permit two years ago, citing an enduring low-price environment. It also complained at the time of uncertainty over resource laws in South Africa. The country recently pledged to draft separate legislation for oil and gas.

Shell declined to comment. Should the deal for OK Energy’s license go through, it would add to the company’s acquisition of a 40% interest in deep-water blocks 5, 6 and 7 in the Atlantic off Cape Town from Anadarko Petroleum Corp.

In February, Total discovered an estimated 1 billion barrels of oil equivalent east of Anadarko’s blocks, where the oceans meet at the tip of the continent. South Africa’s first deep-water find was described as “catalyticR21; for the country by South African Oil & Gas Alliance, an industry lobby group.

Besides the block Shell is interested in, OK Energy, a small oil and gas company, also holds a 10% stake in another area with Equinor ASA off South Africa’s east coast.

[waldron] 30/5/2019 19:08

A Hiccup For Occidental Petroleum
May 30, 2019 10:45 AM ET|
7 comments
|
About: Occidental Petroleum Corporation (OXY), TOT, Includes: APC
Daniel Jones
Daniel Jones
Deep Value, value, contrarian, special situations
Marketplace
Crude Value Insights
(12,940 followers)
Summary

The management team at Occidental Petroleum is dealing with a hiccup that has the potential to worsen.

Their issues now revolve around getting the government of Algeria to allow it to sell some of Anadarko's assets to Total.

In the best case, this will end up not being material for shareholders, but in the worst, it will require the company to look for financing elsewhere.

Thankfully, this shouldn't be too much of a concern for investors, given projected EBITDA and leverage ratios, but it could ultimately increase the cost at the end of the day.

Looking for a community to discuss ideas with? Crude Value Insights features a chat room of like-minded investors sharing investing ideas and strategies. Start your free trial today »

It looks like the management team at Occidental Petroleum (OXY) may have come across a hiccup in its industry-changing acquisition of Anadarko Petroleum (APC). In order to finance the acquisition, the company previously decided to divest of some of Anadarko’s assets, but this move, while likely wise from an operational perspective, has now been partially challenged by one of Anadarko’s long-standing business partners: the government of Algeria. In the best case, this will be an issue that can be resolved without too much cost or delay, but in the worst, it could throw a wrench in Occidental’s plans.
A look at the news

Earlier this month, news broke that Occidental would be acquiring Anadarko in one of the largest M&A deals in the energy space to ever occur. This development resulted in the termination of the agreement with Chevron (CVX), wherein Chevron would have purchased the company at a price far lower than what Occidental and Anadarko ended up arriving at. Due to the nature of the transaction, though, Occidental is now responsible for coming up with cash of approximately $29.625 billion.

As of its latest fiscal quarter, cash on hand for Occidental was only $1.752 billion, while cash on hand for Anadarko came out to $2.026 billion. Collectively, this comes out to $3.778 billion. Once the two companies combine, it’s likely that some of this cash (probably $500 million to $1 billion) can be used to cover the cash component of the deal, but that still leaves a sizable chunk of the deal that requires financing. To help cover this, Occidental struck up a deal with Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B), wherein it would provide Occidental $10 billion in exchange for some really attractive terms. Still, even in the best case, this would leave Occidental having to come up with cash proceeds of $18.625 billion.

Some of this, undoubtedly, can be completed with the issuance of debt. Perhaps, all of it even can be, but in an effort to cut down on non-core operations and in order to avoid taking on too much leverage, Occidental decided that, contingent upon the deal going through, it would sell to Total S.A. (TOT) assets from Anadarko in exchange for $8.8 billion, nearly halving the amount it will need to receive from the debt markets. This, however, is where the newest headache for the company arises.

According to one source, Mohamed Arkab, the Energy Minister of Algeria, stated, among other things,

“We have good relations with Anadarko and we will do the utmost to preserve Algeria’s interests, including using our pre-emption right to block the sale.”

This statement flies directly in the face of Occidental’s move to partially finance the acquisition of Anadarko with its asset sale. In the best case, this is a move that might be easily resolved through careful negotiation. In the worst case, however, it will result in Occidental needing to raise billions in excess capital through other means but is unlikely to end up in the loss of the full asset sale opportunity.

Shortly after Mr. Arkab made his statements, even alluding to a possible exercise of his country’s preemption rights (giving Algeria first dibs on acquiring its assets back), he took a step back publicly. In a statement, he said that Algeria is open to a ‘good compromise’ that is in the best interests of his country. While there still is the possibility the deal won’t go through, this does increase the probability of it happening, but more likely than not, the government will want its hands in the pie in some way, shape, or form.
A look at the asset sale

According to a press release issued by Total, there are four main sets of assets being sold off to it by Occidental as part of the transaction between the two entities. The first of these, shown in the image below, covers Anadarko’s assets in Algeria. Today, Anadarko owns a 24.5% participating interest and operatorship of blocks 404a and 208 offshore the country. This covers the Hassi Berkine, Ourhoud, and El Merk fields located in the Berkine Basin. Last year, 7 wells there were developed, and Total already serves as a 12.25% owner of these assets.

*Taken from Anadarko

With 320 thousand boe (barrels of oil equivalent) per day of gross output, these assets are the most significant that Total is acquiring from Occidental. Unfortunately, a breakdown of this set of assets does not provide a figure of how much of the $8.8 billion purchase price is allocated to it, but we do know that it’s likely the lion’s share. After all, production from Algeria last year resulted in revenue of about $1.60 billion for Anadarko, or about 12.2% of the company’s overall revenue of $13.07 billion. This was up from just $1.103 billion, but down from 13.1% of aggregate sales that was seen just two years earlier.

In addition to the assets in Algeria, Total has been on track to acquire, as part of the transaction, the company’s operations in Ghana, which can be seen in the image below, and its right to the Mozambique LNG project and to some exploration-related licenses at the new Brulpadda discovery in South Africa. According to management, the assets in Ghana, of which Anadarko owns a 27% interest, cover the Jubilee field, and they produce, when combined with the TEN fields (of which 19% is owned by Anadarko as well) gross production of 143 thousand boe per day. For Mozambique, there is no output today, but the project is largely de-risked and close to receiving the go-ahead, and the project, of which Anadarko owns 26.5%, is expected to result in production in 2024. If all goes according to plan, the end result there will be an output of 12.8 million tonnes per year on the 18 (of 60) Tcf developed by that point.

*Taken from Anadarko

All put together, these assets comprise 1.2 billion boe in 2P reserves, about 70% of which is natural gas, plus Mozambique will bring on an estimated 2 billion boe to the fold over time as well. Management has not given an estimate of how much of the 1.2 billion in boe is attributable to Algeria vs. Ghana, but given the firm’s 10-K’s detailing of the assets in Algeria, compared to the ‘Other International’ designation assigned to its other non-core assets, my guess is that it’s a sizable majority.
Takeaway

Right now, there is some uncertainty facing Occidental, Anadarko, and Total, but investors shouldn’t panic yet. In the worst case, Occidental will need to raise most (but probably not all) of the $8.8 billion elsewhere, very likely through a larger debt issuance. Should this happen, and counting Warren Buffett’s investment truly as equity as has been intended, having to come up with the extra $8.8 billion in debt will only increase the combined firm’s net leverage ratio from the 1.83 I calculated, it will end up being (using 2018’s figures) 2.33. That’s a decent increase but not large enough to warrant the deal not going through unless the terms of the added debt are onerous.

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