Profile: Anadarko Petroleum Corp (APC.D)
24 Jul 2014
Anadarko Petroleum Corporation (Anadarko) is an independent exploration and production company. As of December 31, 2011, the Company had over 2.5 billion barrels of oil equivalent (BOE) of proved reserves. Anadarko’s asset portfolio includes positions in onshore resource plays in the Rocky Mountains region, the southern United States, and the Appalachian basin. The Company is also independent producers in the deepwater Gulf of Mexico, and has production and exploration activities globally, including positions in high-potential basins located in East and West Africa, Algeria, China, Alaska, and New Zealand. The Company operates in three segments: Oil and gas exploration and production, Midstream, and Marketing. In May 2011, in the Wattenberg area, the Company acquired an additional 93% interest in 195 million cubic feet per day processing facility from a third party. In August 2012, Western Gas Partners, LP acquired an additional 24% membership interest in Chipeta Processing LLC from Anadarko.
Oil and gas properties and activities
Anadarko’s operations in the United States include oil and natural-gas exploration and production onshore in the Lower 48 states, onshore Alaska, and the deepwater Gulf of Mexico. During the year ended December 31, 2011, the Company’s operations in the United States accounted for 87% of total sales volumes and 90% of total proved reserves. Anadarko’s Rocky Mountains Region (Rockies) properties are located in Colorado, Utah, and Wyoming and are a combination of oil and natural-gas plays. As of December 31, 2011, Anadarko operated approximately 14,300 wells and has an interest in approximately 9,500 non-operated wells in the Rockies. Anadarko operates fractured carbonate/shale reservoirs, tight gas assets, and coal bed methane (CBM) natural-gas assets, as well as enhanced oil recovery (EOR) projects within the region. The Company also has fee ownership of mineral rights under approximately eight million acres, which passes through Colorado and Wyoming and into Utah (Land Grant). During 2011, the Company drilled 1,029 wells in the Rockies. The Wattenberg field is a liquids-rich area where Anadarko operates over 5,300 wells. During 2011, the Company drilled 433 vertical/directional wells in the Wattenberg field. The Greater Natural Buttes area in eastern Utah is the Company’s tight gas assets, where the Company is focusing on liquids-rich areas. During 2011, the Company operated over 2,200 wells in the Greater Natural Buttes area, drilled 288 wells. Anadarko also operates multiple CBM properties in the Rockies.
Anadarko’s Southern and Appalachia Region properties are located in Texas, Pennsylvania, Louisiana, Kansas, and Ohio. Operations in these areas are focused on finding and developing both natural gas and liquids from shales, tight sands, and fractured-reservoir plays. Anadarko holds an interest in approximately 705,000 net acres in shale and other plays throughout the Southern and Appalachia Region. These plays include the Eagleford/Pearsall shales in southwest Texas, the Marcellus shale in north-central Pennsylvania, the Bone Spring formation and Avalon shale in the Delaware basin of West Texas, the Haynesville shale in East Texas and Louisiana, and the Utica shale in eastern Ohio. During 2011, the Company drilled 442 wells and completed 364 wells in the Southern and Appalachia Region.
In the Company’s Eagleford shale Anadarko holds approximately 405,500 gross and 193,000 net acres with an average working interest of approximately 49% in this area. During 2011, the Company operated an average of nine rigs, which spud 228 horizontal wells and completed 197 wells. During 2011, in the Appalachian basin, where the Marcellus shale is being developed, 134 operated horizontal wells were spud and 73 wells were completed utilizing a fleet that averaged seven rigs. During 2011, Anadarko also participated in 148 new horizontal wells and 135 completions as a non-operating partner in the area. During 2011, the Company accumulated over 370,000 gross acres in the area of the eastern Ohio Utica shale in the Appalachian basin. Anadarko owns 330,000 net acres in the Delaware basin. During 2011, Anadarko spud 50 operated wells, participated in 27 non-operated wells, and completed 54 operated wells and 27 non-operated wells in the area. Anadarko’s oil and natural-gas production and development activity in Alaska is concentrated on the North Slope.
In the Gulf of Mexico, Anadarko owns an average 64% working interest in 487 blocks. The Company operates seven active floating platforms, holds interests in 34 producing fields. Anadarko continued advancing its development project at Caesar/Tonga. During 2011, the Company completed and tested three wells. During 2011, Anadarko participated in the drilling of the Coronado 1 exploration well (15% working interest), located in Walker Ridge Block 143.
The Company’s international oil and natural-gas production and development operations are located in Algeria, Ghana, and the People’s Republic of China. The Company also has exploration acreage in Ghana, Mozambique, Brazil, Liberia, Sierra Leone, Kenya, Cote d’Ivoire, New Zealand, Indonesia, and other countries. During 2011, international locations accounted for 13% of Anadarko’s total sales volumes and 27% of sales revenues. During 2011, Anadarko drilled 33 wells in international areas, which included natural-gas discoveries in Mozambique and oil discoveries in Ghana. Anadarko is engaged in development and production activities in Algeria’s Sahara Desert in Blocks 404 and 208. During 2011, all production is from fields located in Block 404, which produce through the Hassi Berkine South and Ourhoud Central Production Facilities (CPF). Anadarko’s exploration and development activities in Ghana are located offshore in the West Cape Three Points Block and the Deepwater Tano Block. During 2011, the Company participated in 10 exploration and appraisal wells outside the Jubilee field, including the Akasa 1 discovery well in the West Cape Three Points Block, two Teak discovery wells, and one Teak appraisal well to the Teak 1 discovery.
Anadarko operates two blocks in Mozambique totaling approximately six million gross acres. During 2011, the Company drilled two natural-gas discoveries (Tubarao and Camarao) and two appraisal wells (Barquentine 2 and Barquentine 3) in the Offshore Area 1 of the Rovuma basin where Anadarko holds a 36.5% working interest. Anadarko’s development and production activities in China are located offshore in Bohai Bay. During 2011, development drilling was ongoing, and Anadarko drilled 19 wells including eight side-tracks of low oil-rate/high water-cut producers. Anadarko holds exploration interests in approximately 750,000 gross acres in six blocks located offshore Brazil in the Campos and Espirito Santo basins. During 2011, in these areas, Anadarko drilled two appraisal wells. In Block BM-C-32 (33% non-operated working interest) in the Campos basin, the Itaipu 2 pre-salt appraisal well established a fluid contact and appears to extended the accumulation 394 feet downdip from the Itaipu discovery well, which is located four miles to the northwest.
As of December 31, 2011, the Company operated four blocks in offshore Liberia totaling approximately 3.3 million exploration acres in the Liberian basin. Anadarko operates and has a 55% participating interest in Block SL-07B-11 in offshore Sierra Leone encompassing approximately 1.2 million gross acres. Anadarko operates and has a 50% participating interest in five deepwater blocks offshore Kenya encompassing approximately 7.5 million gross acres. Anadarko operates approximately 11.5 million exploration acres in the Taranaki and Canterbury basins in New Zealand. Anadarko has participating interests in approximately 3.4 million gross exploration acres in Indonesia through a combination of one operated and two non-operated Production Sharing Contracts. Anadarko also has exploration projects in other overseas, including Morocco, Tunisia, and South Africa.
Midstream properties and activities
Anadarko invests in midstream (gathering, processing, treating, and transportation) assets to its operations in regions where the Company has oil and natural-gas production. In addition, Anadarko’s midstream business provides services to third-party customers, including independent producers. Anadarko generates revenues from its midstream activities through a range of agreements, including fixed-fee, percent-of-proceeds, and keep-whole agreements. As of December 31, 2011, Anadarko had 31 gathering systems and 25 processing and treating plants located throughout onshore producing basins in Wyoming, Colorado, Utah, New Mexico, Kansas, Oklahoma, Pennsylvania, and Texas. During 2011, the focus of the midstream activity was the Company’s areas, such as Greater Natural Buttes, Wattenberg, Delaware basin, and the Eagleford shale, as well as growth in the Marcellus shale dry-gas play. During 2011, in Greater Natural Buttes, gathering and compression capacity of 70 million cubic feet per day was added and the Company is constructing a second cryogenic processing train with a capacity of 300 million cubic feet per day at the Chipeta processing complex. In the Delaware basin, the Company placed oil-gathering and pipeline facilities into service. The oil-gathering and pipeline facilities are directly connected to third-party pipelines.
The Company’s marketing segment manages Anadarko’s natural-gas, crude-oil, condensate, and natural gas liquids (NGLs) sales. The Company’s sales of natural gas, crude oil, condensate, and NGLs are made at market prices for those products at the time of sale. The Company also purchases natural gas, crude oil, condensate, and NGLs from third parties, near Anadarko’s production areas.
The Company sells natural gas under a range of contracts, including indexed, fixed-price, and cost-escalation-based agreements. The Company also engages in trading activities for the purpose of generating profits from exposure to changes in market prices of natural gas, crude oil, condensate, and NGLs. Anadarko’s marketing segment offers supply-assurance and limited risk-management services at competitive prices, as well as other services, which are tailored to its customers’ needs. The Company may also receive a service fee related to the level of reliability and service required by the customer.
Anadarko’s crude-oil, condensate, and NGLs revenues are derived from production in the United States, Algeria, the People’s Republic of China, and Ghana. The Company’s the United States crude-oil and NGLs production is sold under contracts with prices based on market indices, adjusted for location, quality, and transportation. Oil from Algeria is sold by tanker as Saharan Blend to customers in the Mediterranean area. Saharan Blend is crude, which provides refiners products, such as gasoline, and jet and diesel fuel. Oil from China is sold by tanker as Cao Fei Dian (CFD) Blend to customers in the Far East markets. CFD Blend is a sour crude oil, which is sold into both the prime fuels refining market and the market for the heavy fuel oil blend stock. Oil from Ghana is sold by tanker as Jubilee Crude Oil to customers globally. Jubilee Crude Oil provides refiners quantities of products, such as gasoline and jet and diesel fuel. The Company also purchases and sells third-party-produced crude oil, condensate, and NGLs in the Company’s domestic and international market areas.
Anadarko Petroleum Corp
1201 Lake Robbins Drive
THE WOODLANDS TX 77380
Company Web Links
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