Anadarko Announces $860 Million Carried-Interest Agreement for Heidelberg
HOUSTON, TX -- (Marketwire) -- 03/05/13 -- 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 2
012, 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.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this news release, including Anadarko's
drilling risks and its ability to execute on production and
development plans and to consummate the transactions described in
this news release. See "Risk Factors" in the company's 2012 Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other public
filings and press releases. Anadarko undertakes no obligation to
publicly update or revise any forward-looking statements.
Cautionary Note to U.S. Investors: The United States Securities and
Exchange Commission ("SEC") permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable and possible
reserves that meet the SEC's definitions for such terms. Anadarko
uses certain terms in this news release, such as "recoverable
resources" and similar terms that the SEC's guidelines strictly
prohibit Anadarko from including in filings with the SEC. U.S.
investors are urged to consider closely the disclosure in Anadarko's
Form 10-K for the year ended Dec. 31, 2012, File No. 001-08968,
available from Anadarko at www.anadarko.com or by writing Anadarko
at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The
Woodlands, Texas 77380, Attn: Investor Relations. This form may also
be obtained by contacting the SEC at 1-800-SEC-0330.
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