Anadarko announces $860-million carried-interest agreement for Heidelberg development

Anadarko Petroleum Corp. (NYSE: APC) has signed a definitive agreement with an undisclosed party to enter into a carried-interest arrangement for a portion of Anadarko’s ownership in the Heidelberg development project in the deepwater Gulf of Mexico.

Offshore staff

HOUSTON – Anadarko Petroleum Corp. (NYSE: APC) has signed a definitive agreement with an undisclosed party to enter into a carried-interest arrangement for a portion of Anadarko’s ownership in the Heidelberg development project in the deepwater Gulf of Mexico.

Under the terms of the agreement, Anadarko will be carried for $860 million, which represents nearly all its expected capital requirements through the anticipated date of first oil at Heidelberg in mid-2016. In exchange, Anadarko will convey a 12.75% working interest in the Heidelberg development. Anadarko will continue as operator with a 31.5% working interest.

The agreement is expected to close in April 2013, with an effective date of April 1, 2013, and is subject to existing preferential rights, contingencies, and other customary closing conditions.

Anadarko President and CEO Al Walker said: “This agreement establishes a market value of approximately $3 billion for Anadarko’s interest in the Heidelberg deepwater development, which is estimated to hold up to 400 MMbbl of recoverable resources. In addition, ‘our design one, build two’ approach with the ongoing construction of ourLucius spar is expected to result in significant cost savings, and it enables us to shorten the expected development cycle for a project of this scale by up to 18 months.”

The Heidelberg development is located in 5,300 ft (1,615 m) of water, about 140 mi (225 km) offshore Louisiana, and consists of Green Canyon blocks 859, 860, 903, 904, and 948. The project is being developed utilizing atruss spar, which is currently under construction, with a design capacity similar to the Lucius spar at 80,000 b/d.

3/05/2013

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