Global Leader in International Oil and Gas Industry News

posted in:

Anadarko announces $860 million carried-interest agreement for Heidelberg development

Wednesday, Mar 06, 2013

Anadarko Petroleum Corporation (NYSE: APC) today announced it has signed a definitive agreement with an undisclosed party to enter into a carried-interest arrangement for a portion of Anadarko's ownership in the Heidelberg development project in the deepwater Gulf of Mexico. Under the terms of the agreement, Anadarko will be carried for $860 million, which represents nearly all its expected capital requirements through the anticipated date of first oil at Heidelberg in mid-2016. In exchange, Anadarko will convey a 12.75-percent working interest in the Heidelberg development. Anadarko will continue as operator with a 31.5-percent working interest.

"The Heidelberg carried-interest agreement builds upon our track record of accelerating value, maximizing returns and enhancing the capital efficiency of our large-scale projects," Anadarko President and CEO Al Walker said. "This agreement establishes a market value of approximately $3 billion for Anadarko's interest in the Heidelberg deepwater development, which is estimated to hold up to 400 million barrels of recoverable resources. In addition, our 'design one, build two' approach with the ongoing construction of our Lucius spar is expected to result in significant cost savings, and it enables us to shorten the expected development cycle for a project of this scale by up to 18 months."

The agreement is expected to close in April 2013, with an effective date of April 1, 2013, and is subject to existing preferential rights, contingencies and other customary closing conditions.

The Heidelberg development is located in 5,300 feet of water, approximately 140 miles offshore Louisiana, and consists of Green Canyon blocks 859, 860, 903, 904 and 948. The project is being developed utilizing a truss spar, which is currently under construction, with a design capacity similar to the Lucius spar at 80,000 barrels of oil per day.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2012, the company had approximately 2.56 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

Source: Anadarko Petroleum Corporation

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Oil & Gas News

Atlas Oil to Sell BP branded assets in Chicago and NW Indiana 18-04-2014
MetroGas forms powerful consortium to address Miami-Dade County energy needs 18-04-2014
TruStar Energy announces grand opening of city furniture CNG fueling station 18-04-2014
Gastar Exploration begins drilling new well in Utica Shale 17-04-2014
Osiris Projects nearing completion of the ambitious works on the subsea cabling project which will help deliver fast, fibre optic broadband to the H 17-04-2014
Corlena Oil Company II, LLC to sell horizontal Texas Panhandle properties 17-04-2014
Xylem’s Godwin pumps restore critical operations at flooded oil refinery in Argentina 17-04-2014
TXON Partners, LLC to sell North Texas oil properties 17-04-2014
Samson Oil & Gas operational advisory 17-04-2014
Shell announces Malaysia deep-water gas discovery 17-04-2014