This article was originally published by GuruFocus
By Sarfaraz A. Khan and Gohar Yousuf
March 10, 2014
Oil and gas
exploration company Anadarko Petroleum Corp. (APC)
has been divesting its less productive assets as it refocuses on its lucrative
operations in North America. Despite the asset sales, the company could
consistently post increases in production on the back of some of its mega
projects.
Recently, Western
Gas Partners (WES)
has revealed in its quarterly results that the company will acquire some of
Anadarko’s natural gas assets for $375 million. This comes just a week after
Anadarko agreed to sell its Chinese subsidiary for $1.075 billion to the
Chinese energy company Brightoil Petroleum.
Increasing
Production In Sight
On other hand,
despite the asset sales, Anadarko could deliver 5% to 7% growth in production, each year, by 2020. This
could come on the back of the startup of its major project called Lucius, its
onshore assets in Texas and Colorado as well as the Jubilee oilfield located at
Ghana and Algeria’s El Merk project. The company’s Heidelberg field could also
boost Anadarko’s production by 80,000 barrels per day from 2016.
Anadarko’s
Lucius facility, located in the deep-water Gulf of Mexico, will come online in
the next quarter. Anadarko has finished installation of the
80,000-barrels-of-oil-per-day spar, which is a massive 23,000-ton structure.
The topsides of the project, which will sit atop the spar, will be towed to the
location in the current … read full article at GuruFocus
