Anadarko Announces $2.64 Billion All-Cash Transaction for Portion of Offshore
HOUSTON, TX -- (Marketwired) -- 08/25/13 -- Anadarko Petroleum
Corporation (NYSE: APC) today announced it has entered into a
definitive agreement with ONGC Videsh Ltd. (OVL), a wholly owned
subsidiary of Oil and Natural Gas Corporation Limited, to sell a
10-percent interest in Mozambique's Offshore Area 1 (Area 1) for
$2.64 billion in cash. Anadarko will remain the operator of Area 1
with a working interest of 26.5 percent.
"This transaction demonstrates our continuing ability to create
substantial value through exploration and to again accelerate the
value of our longer-dated projects through attractive monetizations
and third-party capital," Anadarko Chairman, President and CEO Al
Walker said. "Mozambique LNG is a premier global energy project, and
we look forward to working with our partners and the government to
advance this world-class development.
"As the operator of Area 1, we are very pleased to have reached this
agreement with OVL, which values our pre-transaction interest at more
than $9.6 billion. We expect to use the net proceeds from this
transaction to further accelerate the short- and intermediate-term
oil and liquids opportunities we have in the Wattenberg field,
Eagleford Shale, Permian and Powder River basins, as well as the Gulf
of Mexico and other evolving plays in our portfolio. Our objective
with this allocation of capital will be to further increase our
cash-flow growth with attractive wellhead margins, while providing
additional value to our shareholders as evidenced by our recent
dividend increase and continued portfolio-management activities."
The transaction is expected to close around the end of 2013, and is
subject to existing preferential rights, governmental approvals and
other customary closing conditions.
Area 1 is operated by Anadarko Mocambique Area 1 Limitada (a wholly
owned indirect subsidiary of Anadarko) and is located in Mozambique's
deepwater Rovuma Basin. The block contains the Prosperidade and
Golfinho/Atum natural gas complexes that combined hold an estimated
35 to 65-plus trillion cubic feet (Tcf) of recoverable natural gas
resources. In cooperation with the Government of Mozambique,
Anadarko, its partners, and Eni (as the operator of the adjacent Area
4 block) continue to advance the development of an LNG park with
first LNG cargoes expected in 2018.
Anadarko's partners in Area 1 include Mitsui E&P Mozambique Area 1,
Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent),
Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration
& Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos,
E.P.'s (ENH) 15-percent interest is carried through the exploration
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.
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
ability to consummate the transaction described in this news release,
successfully manage its capital expenditures to accelerate the
projects identified in this news release, and successfully plan,
secure necessary government approvals for, finance, build and operate
the necessary infrastructure and LNG park in Mozambique. 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
Cautionary Note to 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 natural
gas 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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