Anadarko reports capital budget, outlook for 2008

By OGJ editors
HOUSTON, Feb. 19 -- Anadarko Petroleum Corp. has approved total capital expenditures of $4.5-4.7 billion for 2008, including about 20% for exploration.

The company expects 2008 oil and gas production to reach 205-210 million boe and says it will bring Blind Faith field in the deepwater Gulf of Mexico on stream.

Of the company's proposed outlays, 30% will be spent in the Rocky Mountains, 20% in the US Southern region, 25% in the deepwater Gulf of Mexico, 15% for international and frontier activities, and 10% for midstream facilities.

Anadarko plans to drill 2,700-3,000 development wells in resource plays onshore in the US—85% in the Rocky Mountains, and 15% in its Southern region, including the Delaware basin, Eastern Chalk, and Carthage areas of Texas.

In the Rocky Mountain region Anadarko also will add a cryogenic processing facility at its Chapita plant in Greater Natural Buttes to double processing capacity to 500 MMcfd, and will add 400 MMcfd of gathering capacity at the Fort Union system in the Powder River basin, bringing its total capacity to 1.3 bcfd.

In the deepwater gulf Anadarko will focus on development drilling, particularly in the eastern gulf and the K2 unit, and will drill 6-8 exploration and appraisal wells targeting Miocene and Lower Tertiary objectives.

Anadarko has allocated most of its international capital toward projects in Brazil, Alaska, Algeria, and China, including deepwater activities in West Africa, the South China Sea, and Peregrino field off Brazil.

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