HASSI MESSAOUD, Algeria, March 26 /PRNewswire/ -- Anadarko Petroleum
Corporation (NYSE: APC) and its partners have signed an amendment to their
Production Sharing Agreement with SONATRACH, the national oil company of
Algeria, that will enable Anadarko to resume exploration of Blocks 404, 208
and 211.
The amendment was signed in Hassi Messaoud by Robert J. Allison, Jr.,
Chairman and Chief Executive Officer of Anadarko, and by Chakib Khelil,
Minister of Energy and Mines and Chairman and Chief Executive Officer of
SONATRACH.
Anadarko's partners in this new exploration venture are Lasmo Oil
(Algeria) Limited, a wholly owned subsidiary of Eni S.p.A., and Maersk Olie,
Algeriet AS, each holding a 25 percent interest. Anadarko, with a 50 percent
interest, is the operator.
The exploration phase of Anadarko's original Production Sharing Agreement
in Algeria ended in 1998. As part of that initial exploration program,
Anadarko drilled 20 exploratory wells, with a 70 percent success rate. This
new agreement will enable Anadarko and its partners to resume exploration in
these three blocks in areas outside of the exploitation license boundaries
that encompass the previous 12 discoveries made by the SONATRACH/Anadarko
association.
"This amendment will allow our Algerian exploration team to build on the
knowledge gathered over the last 15 years," Allison said. "These are the same
blocks we began to explore in 1989, and we know a great deal about this area.
We already have many ideas to investigate on these blocks, and with additional
seismic, we expect to identify even more," Allison added.
Under the terms of the three-phase exploration program, Anadarko and its
partners will spend a minimum of $55 million. During the first five years,
400 square kilometers of 3-D seismic and 1,100 kilometers of 2-D seismic will
be shot and processed; the results of previous seismic surveys will be
reprocessed; and six exploration wells will be drilled. Seismic acquisition
is expected to begin this year, and exploration drilling will likely begin
next year. Should the sixth and seventh year options be exercised, an
additional exploration well will be drilled in each year.
Anadarko, Lasmo and Maersk will finance 100 percent of the exploration
investment; SONATRACH will participate 51 percent in the development and
exploitation phases of any discoveries. The development of any discovery can
make use of existing facilities and infrastructure, reducing development costs
and potentially accelerating first oil production.
The Anadarko/SONATRACH association has discovered nearly 2.8 billion
barrels of oil since the Production Sharing Agreement was signed in 1989.
Anadarko drilled its first well in Algeria in 1991 and made its first oil
discovery in 1993. In 1995, SONATRACH approved the first development plan,
and production began in 1998.
Production facilities are currently under construction that will allow the
association to increase gross daily production capacity from 75,000 barrels to
500,000 barrels by mid-2003.
In addition to the three blocks covered in the amendment to the Production
Sharing Agreement, Anadarko was selected as successful bidder for exploration
block 406b, which covers more than 687,000 acres, during a public bid opening
ceremony held by SONATRACH ON Feb. 15, 2001.
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with proved reserves of more than 2 billion barrels
of oil equivalent. Domestically, it has operations in Texas, Louisiana, the
Mid-Continent and Rocky Mountain regions, Alaska and in the shallow and deep
waters of the Gulf of Mexico. Anadarko is the most active driller in North
America. Internationally Anadarko is active in Canada, Algeria, Tunisia,
Egypt, West Africa, Guatemala, Venezuela, Argentina, Brazil, Georgia, the
North Atlantic and Australia.
This news release contains forward-looking statements and projections made
in reliance of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Anadarko believes that these forward-looking statements
are based on current, reasonable and complete information and assumptions.
However, a number of factors could cause actual results to differ materially
from the projections, anticipated results or other expectations expressed in
this release. While Anadarko makes these forward-looking statements in good
faith, neither Anadarko nor its management can guarantee that the anticipated
future results will be achieved. Reference should be made to Anadarko's
Securities and Exchange Commission filings for additional important factors
that may affect actual results, including the section entitled "Additional
Factors Affecting Business" in the Management's Discussion and Analysis (MD&A)
included in the company's 1999 Annual Report on Form 10-K.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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Corporation
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