Anadarko Petroleum Corp. agreed to buy Gulf of Mexico oil assets from Freeport-McMoRan Inc. for $2 billion and said it will use revenue generated by the offshore wells to develop its U.S. oilfields on land.
Commoditities giant Freeport-McMoRan is scaling back its energy business and continues to try to sell some oil and gas assets as crude prices rebound from 13-year lows.
Freeport-McMoRan co-founder James “Jim Bob” Moffett’s last big gamble as head of the world’s largest copper miner was a $1.2 billion wrong-way bet six miles beneath the Louisiana coastline.
The co-founder of commodities giant Freeport-McMoRan James "Jim Bob" Moffett will step down as chairman and quit the board. He will remain as a consultant and adviser the company said.
Commodities giant Freeport McMoRan has reduced capital expenditures and cut drillships as it extended spending and production cutbacks as it battles to preserve cash in a deepening commodity meltdown.
Freeport-McMoRan is set to review its strategic alternatives for oil and gas business as well as making changes to its board. The company said the move had been taken after “constructive” discussions with shareholders. Freeport will now evaluate alternative courses of action designed to enhance value and achieve self-funding of the company’s oil and gas business.
Mining giant Freeport-McMoRan may issue up to $1billion in common shares as it grapples with a global market slowdown for natural resources.
US mining and oil heavyweight Freeport-McMoRan made a $1.85billion loss in the second quarter of 2015. The company posted $2billion of write-downs related to its oil and gas properties and other one-off items. Richard Adkerson, chief executive, said: "Our second-quarter results reflect strong operating performance in our global mining business, and solid production results and continued positive drilling and development results in our oil and gas operations.