Freeport McMoRan has agreed to sell its deepwater Gulf of Mexico (GoM) portfolio to Anadarko for US$2 billion and up to US$150 million in contingent payments. The portfolio consists of two recently onstream fields the Anadarko operated Lucius and Heidelberg and a combination of mature operated and non operated assets including Holstein and Horn Mountain. The portfolio also consists of 69 exploration leases. Anadarko is adding significant production and cash flow to its GoM portfolio at an attractive price. It increases ownership in Lucius and Heidelberg and gains operatorship of mature low cost assets with associated infrastructure which will position the company well for future exploration and development in GoM. The company expects to generate significant incremental cash flow that will be used to reinvest in key US onshore assets. Anadarko's GoM production increases to approximately 155 000 boe/d making Anadarko the third largest GoM producer.