Anadarko signs Lucius joint venture deal

Anadarko Petroleum Corporation has signed a definitive agreement to enter into a joint venture capital carry arrangement for Anadarko’s ownership in the Gulf of Mexico Lucius development project with an undisclosed party. Anadarko will be carried for USD$556 million, the estimated full amount of its expected capital obligation through the anticipated date of first production at Lucius. Anadarko will continue as operator with a 27.8% working interest and convey a 7.2% working interest in the development in exchange.

 

 

Expected to close in the third quarter of 2012, the agreement has an effective date of January 1st, 2012 and is subject to existing preferential purchase rights and other customary closing conditions.

 

 

Located approximately 230 miles offshore in the Gulf of Mexico in 7,200 feet of water, the Lucius development includes portions of Keathley Canyon blocks 874, 875, 918 and 919 and is being developed using a truss spar floating production facility that is currently under construction. The spar will have the capacity to produce over 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day.

 

 

“This agreement further enhances the capital efficiency of our investment in the estimated 300-plus-million-BOE Lucius development. We look forward to closing this agreement and working with out prospective partner and the other Lucius co-venturers to advance this project on time and on budget toward first production in the second half of 2014,” Al Walker, Anadarko President and CEO said.