Anadarko Petroleum has signed a $2bn agreement to acquire US-based Freeport McMoRan Oil & Gas's deepwater assets in the Gulf of Mexico.  

The deal is expected to double Anadarko's ownership in the Lucius development to around 49% from its previous 23.8% and will add approximately 80,000boepd in production capacity.

Furthermore, the acquisition will expand Anadarko's operated infrastructure throughout the Gulf of Mexico and is set to generate an estimated $3bn of incremental Gulf of Mexico free cash-flow over the next five years.

Anadarko Petroleum chairman, president and CEO Al Walker said: "Our current plans are to add two rigs in each play later this year, and to increase activity further thereafter, with an expectation of more than doubling our production to at least 600,000boe per day collectively from these two basins over the next five years.

“This increased activity would drive a company-wide 10% to 12% compounded annual growth rate in oil volumes over the same time horizon in a $50 to $60 oil-price environment, while investing within cash-flows.

"The transaction expands Anadarko's infrastructure in the Gulf."

“Additionally, the transaction expands Anadarko's infrastructure in the Gulf, adds to our inventory of low-cost, subsea tieback opportunities, and bolsters optionality with new exploration prospects.”

Net daily sales volumes from Freeport’s GOM properties averaged about 73,000boe for the 12 month period ending 30 June this year.

Freeport-McMoRan president and CEO Richard Adkerson said: "We are pleased to announce this transaction, which brings our total 2016 asset sale transactions to over $6bn and reflects our commitment to debt reduction and our focus on dedicating our capital and management resources to our global leading copper business.”

Subject to customary closing conditions, the transaction and is expected to be completed in fourth quarter of this year.

Image: Anadarko Gulf of Mexico exploration. Photo: courtesy of Anadarko Petroleum Corporation.