With a view to focus more on North American assets, oil and
Anadarko Petroleum Corporation
) decided to shed its Chinese subsidiary. The subsidiary
earmarked for sale holds Anadarko's non-operating interest in the
Bohai Bay field, offshore China.
In 2013, Anadarko's net oil sales volumes from the Bohai Bay
averaged around 11,000 barrels per day. Anadarko will divest the
unit to a wholly owned subsidiary of Brightoil Petroleum
(Holdings) Limited for $1.075 billion. The deal is expected to
close this year.
Anadarko is currently following a very simple strategy,
concentrating more on the lucrative onshore and offshore assets
in North America and high profile international assets. At
the same time, the company is disposing of some of its
international assets to fund ongoing exploration and exploration
activities. In 2013, Anadarko entered into agreements to sell
assets worth $4.5 billion.
The company's performance in 2013 was driven by solid
contribution from its North American assets. In 2013, Anadarko's
U.S. onshore operating areas achieved a 25% year-over-year
increase in oil volumes. The company plans to bring the
Lancaster plant and the Front Range pipeline online during the
first quarter of 2014 further strengthening its existing onshore
In addition, Anadarko's deepwater exposure in the Shenandoah
basin, Gulf of Mexico could further expand its oil and gas
reserves. Anadarko is a prime operator in the Shenandoah basin
having ownership in all three discoveries of the basin. The
company will ramp up its development activities in this region to
strengthen the existing position.
We also expect Anadarko's existing exposure in Mozambique, the
Ten development in Ghana (expected to come online in 2016) and EL
Merk development in Algeria to further its global production
Anadarko currently has a Zacks Rank #3 (Hold).Some
better-ranked stocks in the same industry are
Matador Resources Co.
Athlon Energy Inc.
Clayton Williams Energy, Inc.
). All these stocks hold a Zacks Rank #1 (Strong Buy).
ANADARKO PETROL (APC): Free Stock Analysis
ATHLON ENERGY (ATHL): Free Stock Analysis
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
To read this article on Zacks.com click here.