Anadarko Petroleum double its share in Lucius deepwater oil and gas project in Gulf of Mexico

Offshore oil Anadarko PetroleumAnadarko Petroleum double its share in Lucius deepwater oil and gas project in Gulf of Mexico after 2 billion USD acquisition of Freeport McMoRan Oil & Gas assets. The US petroleum and natural gas exploration and production company will increase its ownership in development to 49% and expands operated infrastructure throughout in the region. Anadarko Petroleum expects to generate 3 billion USD free cash flow over the next five years and to add approximately 80,000 net barrels of oil equivalent (BoE) per day, more than 80% of which is oil. The transaction is scheduled to complete until the end of the year and will be financed by selling 35.25 million shares in a new offering, equal to 2.04 billion USD.

“This immediately accretive, bolt-on transaction strengthens our industry-leading position in the Gulf of Mexico and is a catalyst for the company’s oil-growth objectives, with quality assets being acquired at an attractive price to create significant value”, said the CEO of Anadarko Petroleum, Al Walker. “Additionally, the transaction expands Anadarko’s infrastructure in the Gulf, adds to our unmatched inventory of low-cost, subsea tieback opportunities, and bolsters optionality with new exploration prospects. The company’s Gulf of Mexico position, with the addition of these properties, will have net sales volumes of approximately 155,000 BOE per day, comprised of approximately 85 percent oil”, added he.

The Lucius oil field is located in the Keathley Canyon block in the Gulf of Mexico. The deepwater field containing high-quality crude oil and associated gas. Lucius contains thick reservoir sands with good porosity and permeability. It is estimated to contain reserves of more than 400 million barrels of oil equivalent. The gross oil sales volumes through the facility recently surpassed 100,000 barrels of oil per day (BOPD).