By OGJ editors
HOUSTON, Nov. 12 -- A group led by BHP Billiton agreed to buy Anadarko Petroleum Corp.'s Genghis Khan oil and gas development in the deepwater Gulf of Mexico for $1.35 billion, Anadarko reported.
BHP Billiton leads the Shenzi group with 44% interest and will be the operator. Partners are Hess Corp. and Repsol YPF SA with 28% each. These three companies already own adjacent Shenzi field.
The Genghis Khan sale involves a 100% stake in Green Canyon Block 652 and certain deep rights in Green Canyon Block 608. The sale is expected to close in the fourth quarter.
The development has gross hydrocarbon reserves of 65-170 million boe, BHP said Nov. 13. Development may include as many as seven production wells, and production is scheduled for mid-2007 with continued drilling to follow.
The Genghis Khan well, drilled to 26,000 ft TD in 4,300 ft of water, tested 110 ft of high-quality net oil pay in the Lower Miocene and additional pay in the Middle Miocene. Production plans call for a subsea tieback to the Marco Polo platform, 2.4 miles away (OGJ, May 5, 2005, Newsletter).
The divestiture is part of Anadarko's efforts to help raise $15 billion to reduce debt from its $21 billion purchases of Kerr-McGee Corp., Oklahoma City, and Western Gas Resources Inc., Denver (OGJ, July 10, 2006, p. 27).
Anadarko Chairman, Chief Executive Officer, and Pres., Jim Hacket said, "Our deepwater position in the Gulf is robust, with nine hub-and-spoke development projects already online, a number of discoveries proceeding toward sanction, several exploration wells currently drilling, and a solid prospect inventory for the future."