Anadarko Petroleum agrees partnership for Gulf of Mexico Lucius development

Oil Rig

US oil explorer Anadarko Petroleum Corporation (NYSE: APC) announced that it would create a capital carry joint venture with an unnamed partner for Anadarko’s ownership in the Gulf of Mexico Lucius development project.

The agreement will see the unnamed party investing $556m (€442m) to fund Anadarko’s entire share of the project through first production and get a 7.2% working stake in it.

Anadarko will remain as operator with a working interest of 27.8%, it said. CEO and president Al Walker commented that the JV deal increases the capital efficiency of the group’s investment in the Lucius project estimated at over 300m barrels of oil equivalent (BOE). The company will work with its new JV partner and other co-partners to ensure that the project meets its deadline for first production scheduled for the second half of 2014, Walker added.

The JV deal is anticipated to wrap up in the third quarter of this year, with the effective date being 1 January 2012, subject to existing preferential purchase rights, among other customary conditions.

The Lucius project includes parts of some Keathley Canyon blocks, with a truss spar floating oil and gas production facility that is currently being built used for its development.

With around 2.54bn BOE of proved reserves at the end of last year, Texas-based Anadarko ranks among the largest independent exploration and production companies globally. The company has worldwide production and exploration operations with positions in high-potential basins in East and West Africa, Algeria, China, Alaska and New Zealand.

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