Freeport-McMoRan Oil & Gas LLC, a subsidiary of Freeport-McMoRan Copper & Gold Inc., has completed its $1.4 billion acquisition of certain interests in the deepwater Gulf of Mexico from Apache Corp. (OGJ Online, May 8, 2014).
The deal encompasses interests in the Lucius and Heidelberg oil production development projects and 11 exploration leases.
Following the exercise of preferential purchase rights by other working interest owners in the Lucius project, Freeport-McMoRan O&G acquired 51.2% of Apache's 11.7% working interest in the Lucius oil development project, 100% of Apache's 12.5% working interest in the Heidelberg oil development project, and several exploration leases for $919 million.
Following closing and the interim redetermination of equity ownership by the co-owners in Lucius field, Freeport-McMoRan O&G owns 25.1% working interest in Lucius.
The acquisition was funded with proceeds from Freeport-McMoRan O&G’s sale of Eagle Ford assets to Encana Oil & Gas Inc., which closed on June 20 (OGJ Online, May 7, 2014). The estimated combined after-tax net proceeds from these transactions total $1.8 billion.