Anadarko hikes spending to $5.6 billion for 2010

By OGJ editors
HOUSTON, Mar. 2 -- Anadarko Petroleum Corp. on Mar. 2 said it plans capital expenditures of $5.3-5.6 billion this year compared with $4.6 billion in 2009.

Jim Hackett, Anadarko chairman and chief executive officer, said the company ended 2009 with record production, nine deepwater discoveries, and “significant” cost reductions.

Based upon expected growth from natural gas shale plays and major oil projects, Hackett forecast Anadarko could surpass 3 billion boe of proved reserves by yearend 2014 compared with 2.3 billion boe as of yearend 2009.

Hackett said $1.1 billion is allocated toward 2010 exploration programs, with much of it focused on worldwide deepwater exploration.

Anadarko plans to drill up to 13 exploration and appraisal wells off West Africa, 7-10 wells in the Gulf of Mexico, 4-6 wells each in Brazil and Mozambique, and 3-5 wells in Southeast Asia.

“We are targeting approximately 400 million boe of net discovered resources in 2010, a 12% increase over our record 2009 results,” Hackett said. “At the same time, we are actively appraising several of our recent discoveries—Wahoo in Brazil, Tweneboa in Ghana, and Lucius, Vito, and Heidelberg in the Gulf of Mexico.”