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Anadarko plans $1.1 billion spend for deepwater GoM

Written by  Thursday, 16 November 2017 12:55

Anadarko Petroleum will allocate US$1.1 billion toward its deepwater Gulf of Mexico operations in 2018, the US independent announced on 16 November.

During a Q3 2017 earnings call in early November, President and CEO Al Walker said Anadarko is focused on "the three Ds" – the Delaware and DJ Basins onshore and the Deepwater Gulf of Mexico, citing attractive economics. And, the company made that clear in today's 2018 capital program guidance. Anadarko said it expects to make capital investments in the range of $4.2-4.6 billion in 2018, with approximately 85% going toward US-based interests on- and offshore.

"The majority of these [deepwater] investments are expected to be directed toward high-return oil development opportunities near operated infrastructure at Lucius, Horn Mountain, Marlin, Holstein and Marco Polo," Anadarko said. "The company plans to operate two floating drillships and spud approximately five development wells in the Gulf during the year."

Horn Mountain, Marlin, and Holstein, plus a doubled interest in the Anadarko-operated Lucius were picked up during the company's $2 billion acquisition of Freeport-McMoRan's interest back in late 2016.

Anadarko also said today it will set aside $200 million for exploration in 2018, with the majority of spending focused on the Gulf of Mexico, where the company has identified prospects near existing operated infrastructure.

During the Q3 2017 earnings call, Mitchell Ingram, executive vice president, international & deepwater operations and project management, discussed Anadarko's excitement around Horn Mountain's possibilities.

"We're anticipating in 2018 that we'll have around five wells and we plan to tieback into that [Horn Mountain], and there's a mix of development wells and exploration wells," he said.

Walker hasn't dismissed the idea of exploration offshore Colombia in 2018. "We'll continue to look at the opportunities we have in Colombia, which will be probably late next year or early 2019 before we drill the first well there," he said during the Q3 2017 earnings call.

Elsewhere, Anadarko said it will allocate $150 million toward its operations in Algeria and Ghana to support further drilling in the TEN development area. The company expects drilling to begin in early 2018. It also expects additional drilling operations at Jubilee due to the Ghanaian government's approval of full field development plans.

Mozambique will also see investment dollars. Anadarko has earmarked about $150 million to advance the Mozambique LNG project. "This investment will primarily be used to fund Anadarko's portion of the costs associated with preparing the site of the future LNG park," the company said.

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