Freeport-McMoRan Oil & Gas (FM O&G) has completed the previously announced acquisition of certain of Apache Corporation’s interests in the Deepwater Gulf of Mexico (GOM).
Following the exercise of preferential purchase rights by other working interest owners in the Lucius project, FM O&G acquired for $919 million, 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.
Following closing and the interim redetermination of equity ownership by the co owners in the Lucius field, FM O&G owns an approximate 25.1% working interest in Lucius.
The Deepwater GOM acquisition was funded with proceeds from the previously reported sale of FM O&G’s Eagle Ford Shale assets, which closed on June 20, 2014. The estimated combined after-tax net proceeds from these transactions approximate $1.8 billion. On June 23, 2014, FCX announced that it will redeem in July 2014 approximately $1.7 billion aggregate face amount of senior notes with an average annual
interest rate of approximately 6.6%.
Press Release, July 1, 2014