Algeria Threatens Total-Oxy-Anadarko Deal

Algiers is unlikely to scupper Total’s $8.8bn purchase of Anadarko’s Africa assets. But the potential for drawn-out negotiations could nonetheless threaten the deal, which in turn forms a key part of Oxy’s financing of its $57bn Anadarko takeover.

Algeria energy minister Mohamed Arkab says that Algeria may look to pre-empt the sale by Occidental (Oxy) to Total of Anadarko’s Algeria assets.

Algeria has yet to be officially informed of an $8.8bn side-deal that would see Oxy sell Anadarko’s Algeria and other Africa assets to the French firm as part of its overall $57bn purchase of Anadarko ( MEES, 10 May ).

“Our ministry has contacted Anadarko to get an explanation. But so far we got no answer,” the minister told Reuters on 26 May. This “means there is no contract between Total and Anadarko,” he adds. In this he is no doubt correct seeing that the deal is between Oxy and the French firm – though one can appreciate that it would be the job of existing partner Anadarko to keep Algiers in the loop. (CONTINUED - 618 WORDS)