HOUSTON, Jan. 27 /PRNewswire/ -- The Board of Directors of Anadarko
Petroleum Corporation (NYSE: APC) has approved a capital investment program of
$766 million for 2000. A little more than two-thirds of the budget will be
used for continuing development of the company's key projects in Algeria and
the Gulf of Mexico, as well as in Alaska and other U.S. onshore fields --
particularly the East Texas Bossier Play. About 16% of the 2000 budget
dollars have been earmarked for exploration programs, primarily on the North
Slope of Alaska, in the Gulf of Mexico, and internationally in the North
Atlantic Margin and Tunisia. Overall, about 80% of the budget is planned for
the United States. The 2000 budget represents a 13% increase from the
$680 million spent in 1999.
"This year's budget will help us realize additional value from the areas
where we've been most successful," commented Robert J. Allison, Jr., Anadarko
Chairman and Chief Executive Officer. "We will commence production from the
Alpine Field on the North Slope and from the Hickory and Tanzanite fields in
the Gulf of Mexico. These achievements, coupled with ongoing development of
our fields in Algeria and East Texas, will make 2000 another year of growth
and profitability for Anadarko."
Development
Anadarko's 2000 capital plans call for $527 million to be allocated to
development projects, about 78% of which will be directed to domestic programs
in Alaska, the Gulf of Mexico and select U.S. onshore areas. The remainder
will be used to fund continuing development of oil fields in Algeria.
In Alaska, the company has budgeted $65 million for its share of
development costs at the Alpine Field on the North Slope. Initial production
is scheduled to begin in mid-2000. Anadarko has a 22% working interest in
Alpine, with operator ARCO Alaska owning the remaining 78% interest.
Anadarko plans to spend $100 million for its Gulf of Mexico development
program in 2000, which includes $43 million for continuing construction and
installation of production platforms for the company's 1998 sub-salt
discoveries, Hickory and Tanzanite. Both are expected to be installed this
fall, with initial production in the fourth quarter of 2000. About
$56 million will go towards development drilling activity in the Gulf of
Mexico during 2000.
In Algeria, the company has budgeted $135 million for development projects
to significantly increase oil production in 2001 and beyond. The capital will
be devoted primarily to the ongoing expansion of the Central Production
Facility (CPF). Following the completion of Stage II facilities to develop
the Hassi Berkine South (HBNS) and Hassi Berkine (HBN) Fields in 2002, the CPF
will be capable of producing 210,000 BOPD (gross) from three production
trains.
Exploration
Anadarko has budgeted $121 million for exploration in 2000, about $105
million of which will be directed to U.S. programs, primarily in Alaska and
the Gulf of Mexico.
Internationally, exploration activities in 2000 will continue to be
concentrated in Tunisia and the North Atlantic Margin.
Anadarko believes that cash flow and existing or available credit
facilities will provide the majority of funds to meet its capital and
operating requirements for 2000. The company will continue to evaluate
funding alternatives, including property sales and additional borrowing, to
secure other funds for capital development. At this time, the company has no
plans to issue common stock outside of its Dividend Reinvestment and Stock
Purchase Plan.
ANADARKO PETROLEUM CORPORATION
CAPITAL SPENDING
(Dollars in millions)
2000 Budget 1999 Actual 1998 Actual 1997 Actual
Exploration $121 $189 $257 $185
Development 527 311 344 346
Acquisitions,
Gas Gathering
and Other 22 77 201 67
Capitalized
Interest and
Overhead 96 103 115 88
Total $766 $680 $917 $686
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. Anadarko believes that its expectations are based
on reasonable assumptions. No assurances, however, can be given that its
goals will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) included in the company's 1998
Annual Report on Form 10-K.
For additional information, contact:
Analysts and Investors: Media:
A. Paul Taylor Tony Canino
Phone: 281-874-3471 Phone: 281-873-3855
For more information about Anadarko's worldwide operations, please visit
the Company's web site at http://www.anadarko.com.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
analysts and investors, A. Paul Taylor,
281-874-3471, or media, Tony Canino, 281-873-3855, both of
Anadarko Petroleum Corporation
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