HOUSTON --Anadarko Petroleum Corp. has agreed to sell a 23.2% working interest in the K2 field in the Gulf of Mexico to two undisclosed parties for $1.2 billion. The sale is effective Jan. 1, 2007.
Following the transaction, Anadarko will remain operator of K2 with a 41.8% working interest.
"This transaction allows us to both diversify our risk profile and retain a meaningful working interest as the operator in the unit," says Jim Hackett, Anadarko chairman, president and CEO. "We believe there is outstanding upside potential in this unit and we are working with our partners to finalize plans to enhance the recovery of oil from this large reservoir."
"We believe getting our debt reduced quickly and maintaining a solid investment grade credit rating are integral to the successful execution of our business model," adds Hacket. "We continue to be very pleased with the pace of, and values realized in, our divestiture program."
The transaction is expected to close in the second quarter.