Anadarko Rises After Ending Algerian Tax Dispute: Dallas Mover
Anadarko Petroleum Corp. (APC), the largest independent U.S. oil and natural-gas producer by market value, rose after announcing an Algerian tax settlement that will increase revenue by $1.8 billion in the first year.
Anadarko climbed 1.9 percent to $85.25 at the close in New York.
The company values the settlement at $4.4 billion, including revisions to its production-sharing agreement and tax liability, spokesman John Christiansen said in a telephone interview today.
The agreement with Sonatrach, Algeria’s state-run oil producer, increases Anadarko’s share of crude from Algerian wells and extends the production-sharing agreement to 25 years, according to a statement today.
“We are very pleased to have reached a fair and balanced resolution that will return significant value to Anadarko,” Al Walker, chief operating officer of The Woodlands, Texas-based company, said in the statement.
The value of the revised profit-sharing agreement and the tax settlement is $2.6 billion, in addition to the increased crude share the first year, Christiansen said.
Subject to government approval that is expected within four months, the agreement will also lower payments under Algeria’s 2006 exceptional-profits tax, the source of the dispute, he said.
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