Offshore staff

Anadarko Petroleum Corp. has repositioned itself for growth. In the past 12 months, the company has restructured its asset base, sold approximately $3.5 billion (pre-tax) of non-strategic properties, retired $1.4 billion in debt, and repurchased $1.5 billion of common stock.

"The 2.1 Bboe of net risked resource potential we've identified is in addition to Anadarko's year-end 2004 proved reserves of 2.4 Bboe. About half of these potential new resources are related to properties we are already developing," Jim Hackett, Anadarko president and CEO., says "The remainder are attributable to exploration prospects in our portfolio, including a substantial number of unconventional resource play opportunities onshore North America."

Last June, Anadarko set its restructuring-related divestiture timing goals, which they have met or exceeded, and exercised the financial discipline it promised by retiring debt, repurchasing shares, and otherwise strengthening its balance sheet. The company has reportedly met its production, cost, and other operational guidance for five consecutive quarters.

"Our success over the past year demonstrates our ability to deliver on our growth projections through 2009, including projected 5-9% annual production growth, 4-6% annual reserve growth, and 6-10% annual cash flow growth," Hackett says. "We're also positioning ourselves for growth beyond 2009 by capturing and advancing new projects in the deepwater Gulf of Mexico, Indonesia, Qatar, the Georgia Black Sea, and North and West Africa as well as our LNG project in Canada."

In the eastern GoM, Anadarko has sanctioned the development of its discoveries through an agreement with four other producers and a midstream company. Production through the Independence Hub is expected in 3Q 2007, with Anadarko as operator. The company also made two additional discoveries in the area.

The K2/K2 North development through the Marco Polo hub facility has advanced, with the K2 field beginning production last month and currently producing at a rate of 12,000 boe/d.

Anadarko expects both fields to ramp up through year-end. It achieved further success in April with the Genghis Khan discovery, which is expected to begin production in 2006 through subsea tieback to the Marco Polo platform.

06/22/05