By OGJ editors
HOUSTON, Mar. 23 – Anadarko Petroleum Corp. will buy BP America Production Co.’s 93% interest in the Wattenberg processing plant in northeastern Colorado for $575.5 million, closing by midyear.
The 195 MMcfd plant in Adams County can extract 15,000 b/d of natural gas liquids and condensate. Anadarko, which provides 70% of current throughput, will operate the plant with 100% ownership.
Anadarko is Wattenberg field’s largest producer with sales of 63,000 b/d of oil equivalent.
“Our early efforts in the emerging horizontal Niobrara play are very encouraging. With the anticipated growth in the DJ basin, we expect this acquisition to improve field recoveries, allow for future expansion and capture efficiencies that enable us to reduce operating expenses,” Anadarko said.
“The Wattenberg Plant, when combined with Western Gas Partners LP’s ownership position in the Fort Lupton plant and the recently acquired Platte Valley Plant, gives Anadarko and other area producers exceptional midstream options for development within the Wattenberg field and growth in the greater DJ Basin. Given our flexibility to offer this asset to WGP, it is possible that we will recapture the initial and subsequent capital investments in the future, while continuing to benefit from operational improvements in the basin,” Anadarko added.
Anadarko has 900,000 net acres in the DJ basin, where it expects to be running nine operated rigs, including three horizontal rigs, by the end of March.