Anadarko reaches agreement with Statoil on Gulf of Mexico assets
  by: OilOnline
  Monday, November 06, 2006

Anadarko Petroleum Corporation has signed an agreement whereby Statoil will pay Anadarko $901 million and acquire Anadarko’s interests in and around two deepwater Gulf of Mexico discoveries and one prospect.

The agreement relates to Anadarko’s holdings in the Knotty Head (25 percent working interest) and Big Foot (15 percent working interest) oil discoveries, as well as the Big Foot North (15 percent working interest) prospect.

“This transaction further advances our efforts to reduce financial leverage following the acquisitions of Kerr-McGee and Western Gas Resources in August,” Anadarko Chairman, President and CEO Jim Hackett said. “Anadarko’s position in the deepwater Gulf of Mexico is very robust, with nine hub-and-spoke development projects already on-line, a number of discoveries proceeding toward sanction, six exciting exploration wells currently drilling and a solid prospect inventory for the future. The agreement with Statoil represents an opportunity to realize the value from a portion of our extensive portfolio.”

The transaction is expected to close in the first quarter of 2007, subject to applicable pre-emption rights of co-owners in the subject leases and other customary closing conditions. In lieu of a sale, the parties are discussing the possibility of a joint venture arrangement to effect the transaction.