Back to top

Image: Bigstock

Anadarko Petroleum Signs Long-Term SPA with JERA and CPC

Read MoreHide Full Article

Anadarko Petroleum Corporation recently announced that Mozambique LNG1 Company Pte. Ltd. has signed a Sale and Purchase Agreement for 17 years for ex-ship supply of 1.6 million tonnes per annum (MTPA)with JERA Co., Inc (JERA) and CPC Corporation, Taiwan (CPC). Mozambique LNG1 Company is the jointly-owned sales entity of the Mozambique Area 1. Apart from Anadarko, the co-venturers in Area 1 include six other entities.

The company is on track to complete the Mozambique LNG project and making a final investment decision in the first half of 2019, post securing final approvals. The deal brings company’s total long-term agreements to 11.1 MTPA.

LNG Development

The company’s international operations include oil, natural gas and NGL production in South America and Africa. The company’s asset portfolioincludes a natural-gas discovery in Mozambique.

Anadarko Petroleum is developing Mozambique's first onshore LNG facility that comprises two initial LNG trains with a capacity of 12.88 MTPA to support the development of Offshore Area 1.

Strong Asset Portfolio

The company’s asset portfolio is positioned to deliver long-term value to stakeholders. The company’s premium shale properties, which include the Delaware and Denver-Julesburg basins, the Deepwater Gulf of Mexico and Powder River basin are boosting production volumes.To focus on high-return domestic assets and achieve capital efficiency, Anadarko Petroleum has been systematically selling non-core properties since 2004.

The strong asset base of Anadarko Petroleum in the Permian Basin made it a prime acquisition candidate for the companies that are trying to expand operation in the United States resource rich onshore basin. Initially, Chevron Corp. (CVX - Free Report) had made its bid for the company, but when Occidental Petroleum (OXY - Free Report) raised its bid, Chevron decided to move out with $1-billion breakup fee.

Anadarko’s international operation in Africa that includes the Mozambique holdings will eventually move to TOTAL S.A. (TOT - Free Report) . TOTAL has entered into a binding agreement with Occidental to acquire Anadarko’s assets in Africa (for a consideration of $8.8 billion) post the successful completion of the bid for Anadarko.

Zacks Rank & Price Movement

Anadarko Petroleum currently sports a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.


The shares of the company have increased 4.4%, against the industry’s decline of 31.9% in the past 12 months.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

TOTAL S.A. (TOT) - free report >>

Chevron Corporation (CVX) - free report >>

Occidental Petroleum Corporation (OXY) - free report >>