Offshore staff

HOUSTON -- Anadarko Petroleum Corp. has signed an exploration and production concession contract with the government of Mozambique for Offshore Area 1 in the Rovuma basin. Anadarko was awarded the block in Mozambique's second licensing round earlier this year.

The 2.6-million-acre block includes 90,000 onshore acres and stretches eastward 56 km (35 mi) offshore into 1,800 m (6,000 ft) water depth. The block's boundary borders Tanzania to the north and extends southward 160 km (100 mi).

"Offshore Area 1 is a ground-floor opportunity to explore the highly prospective Rovuma basin, where only two wells have ever been drilled," says Bob Daniels, Anadarko senior vice president of worldwide exploration. "Through our regional evaluation and analysis of existing seismic data covering most of the block, we have already identified multiple leads across an area equivalent in size to 460 typical Gulf of Mexico lease blocks."

Under the terms of the contract, Anadarko has a five-year initial exploration term with options to extend that phase another three years, and a 30-year production term following any commercial discoveries. Anadarko will acquire new 2D and 3D seismic, and drill seven wells during the initial exploration term.

Anadarko operates the block with 100% working interest.

12/20/2006