Sonatrach To Exercise Its Pre-emption Right On Anadarko-Occidental Deal In Algeria

The national hydrocarbons group Sonatrach will exercise its pre-emption right on Anadarko’s interests in Algeria following a decision by the Minister of Energy on a merger/acquisition transaction carried out by Anadarko, “incompatible” with the regulations in force, announced Wednesday a statement from the Ministry of Energy.

According to the press release, “a merger/acquisition operation was carried out on August 3, 2019 between the American oil companies Anadarko and Occidental”.

“As part of the merger/acquisition process, Occidental will transfer all its newly acquired interests in Africa to Total energy firm,” the same source said.

“Anadarko, Sonatrach’s partner on the Berkine perimeter, has requested, in accordance with the Hydrocarbon Law, the approval of the Minister of Energy, for the change of control of “Anadarko Algeria” for the benefit of the company Occidental”, the statement said.

“Under current regulations, the Minister of Energy, Mohamed Arkab, has ruled on this operation and declared its “incompatibility” with Anadarko’s retention in the association contract on the Berkine perimeter,” it was pointed out from the same source.

“As a result, Sonatrach will exercise its pre-emptive right over Anadarko’s interests in Algeria,” the document concluded.