Anadarko Selling Oilfield for $1.35 Billion
13th Nov 2006, 18:33 GMT
Anadarko Petroleum Corp., one of the nation's largest independent energy exploration and production companies, is selling its Genghis Khan discovery in the Gulf of Mexico for $1.35 billion (EU1.05 billion) to owners of the adjacent Shenzi field. The buyers include Australian mining company BHP Billiton Ltd., U.S. oil company Hess Corp. and Spain's Repsol YPF SA. The sale includes full working interests in Green Canyon block 652 and certain deep rights in Green Canyon block 608, and is expected to close before the end of the year, subject to closing conditions. The new project is due to start production by mid-2007. Anadarko Chairman, President and Chief Executive Jim Hackett said the Genghis Khan "divestiture further advances our efforts to reduce financial leverage following the acquisitions of Kerr-McGee and Western Gas Resources in August." BHP is paying $594 million (EU461.75 million) of the price for a 44 percent stake in the Genghis Khan transaction, while Hess said it is paying $378 million (EU293.84 million) for a 28 percent stake. Repsol gets the remaining 28 percent interest. The Genghis Khan field purchase is part of Melbourne, Australia-based BHP's multibillion dollar plans to expand its U.S. operations and expand oil and gas production by a third in the next three years. BHP Group Energy President Mike Yeager said that Genghis Khan will provide "synergies" for Shenzi which, along with the BP-operated Atlantis development, forms the backbone of BHP's Gulf of Mexico growth ambitions. Most of the increase will come from expensive, deep water fields in the Gulf of Mexico, which BHP wants to turn into a powerhouse earnings unit that will offset declines in older fields such as Australia's Bass Strait. Analysts say it is difficult to assess the financial implications of the deal for BHP, one of the world's biggest mining companies, because of the wide-ranging reserve estimate for Genghis Khan...
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