Anadarko Petroleum Corp. (APC), the second-largest independent U.S. oil and natural-gas producer by market value, agreed to pay BP Plc (BP/) $575.5 million for sole ownership of a Colorado processing plant.
Anadarko, which already owned 7 percent of the Wattenberg plant, is buying London-based BP’s 93 percent stake, The Woodlands, Texas-based company said today in a statement. The facility can process about 195 million cubic feet of natural gas and 15,000 barrels of gas liquids and condensate daily.
The largest producer in the Wattenberg field located north of Denver, Anadarko said the purchase will help improve production and allow for expansion. About 70 percent of the gas currently processed by the plant is Anadarko’s, according to the statement. BP no longer produces gas in the region.
Anadarko may sell the plant to Western Gas Partners LP (WES), a limited partnership it formed to own energy assets, and “recapture the initial and subsequent capital investments in the future,” Chuck Meloy, a senior vice president at Anadarko, said in the statement.
The purchase is expected to close by the middle of this year, Anadarko said.
BP has been selling assets following an explosion in the Gulf of Mexico last year at its Macondo well, which led to a record offshore U.S. oil spill. Anadarko owns 25 percent of the Macondo project. BP is the operator and holds a 65 percent stake.
Apache Corp. (APA) is the largest independent U.S. oil and gas producer by market value. Independent companies don’t own refining, chemical or retail fuel businesses.
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