Anadarko Petroleum Corp.
) struck a deal with an unnamed entity to sell 12.75% of its
interest in the Heidelberg development program located in the
deepwater Gulf of Mexico (GoM). Despite the part monetization,
Anadarko will retain its majority stake of 31.5% in the
Heidelberg play. The transaction is expected to fetch the company
roughly $860.0 million.
The agreement is anticipated to close by Apr 2013 and is
subject to current preferential rights, contingencies and
customary closing clauses. Other operators carrying working
interest in the Heidelberg prospect are
Exxon Mobil Corp
) and Statoil ASA.
The Heidelberg project located 140 miles offshore Louisiana is
situated 5,300 feet in water and comprises of five Green Canyon
Blocks. The prospect is developed using truss spar platform,
presently underway and is designed similar to the Lucius Spar,
which has a maximum capacity of 80,000 barrels of oil per day.
Heidelberg has an estimated capacity of 400 million barrels of
Anadarko's strategy of working on two blocks on the same
platform will lead to substantial cost savings as well as shorten
the development cycle of this large scale project. The gains
procured from the part divestment will be ploughed back by the
company in the project thereby speeding up the execution process
and helping Anadarko to accrue returns.
Previously, the company had struck a deal with an undisclosed
party to sell 7.2% of its interest in the Lucius development in
GoM for $556.0 million. Anadarko will continue to be a major
operator with ownership interest of 27.8%.
Recently, the company collaborated with Videocon of India for
the auctioning of its 20% stake in a natural gas prospect in
Mozambique. The sale is expected to bring in approximately $4.5
billion. The resource-rich area has immense development potential
in the hands of large industry operators.
We believe Anadarko's several exploration programs in West
Africa and sizable reserve volumes will bode well for future
However, moderate oil prices globally and political
instability in Africa could hurt the company's operations, going
forward. Anadarko currently carries a Zacks Rank #3 (Hold).
Headquartered in The Woodlands, TX, the company engages in the
exploration, development, production, and marketing of natural
gas, crude oil, condensate, and natural gas liquids (NGLs) in the
United States and internationally.
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