Anadarko Announces $860 Million Carried-Interest Agreement for Heidelberg Development

Tue Mar 5, 2013 8:55am EST

* Reuters is not responsible for the content in this press release.

  HOUSTON, TX, Mar 05 (Marketwire) -- 
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

    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

    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
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.


Anadarko Contacts

John Christiansen

Brian Cain

Christina Ramirez

John Colglazier

Brian Kuck

Bill Tedesco

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