Anadarko is reducing its capital investments by nearly 50%, and plans to monetize up to US$3 billion of assets, as the company focuses on its offshore assets in the Gulf of Mexico, and off Africa.
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Mozambique operations. Image from Anadarko. |
“As we announced last week, we have already closed or announced monetizations totaling approximately $1.3 billion, and we expect our cash position to be further strengthened during the year through substantial cost reductions and additional identified monetization opportunities. We will also benefit from the recent action by our Board to reduce our dividend, which will provide approximately $450 million of additional cash this year,” Al Walker, Anadarko chairman, president and CEO said.
The company’s 2016 plan for the Gulf of Mexico will focus on its capital-efficient tieback oil opportunities, in addition to advancing appraisal activities.
“By leveraging its existing infrastructure, Anadarko's tieback opportunities offer returns of more than 30% at today's strip prices,” the company said. “These activities will include tiebacks at Lucius, Caesar/Tonga and K2.”
Anadarko also has its eyes set to advance its existing discoveries through appraisal activities at Shenandoah and Phobos.
One exploration well is planned at the Warrior prospect, which if successful, could be a tieback to K2.
Anadarko is one of the companies leading the way for the Gulf of Mexico to set record high production levels in 2017 with its projects.
Offshore Côte d'Ivoire, the company will move to advance its Paon oil discovery toward potential development with one appraisal well, a drillstem test, and two exploration wells. Once activities are completed in Côte d'Ivoire, the rig is scheduled to return to Colombia to conduct additional exploration drilling activities.
Offshore Ghana, first oil is expected at the TEN complex in Q3 2016.
In Mozambique, minimal funding is expected this year, as the company works three parallel paths toward a final investment decision for its LNG project, which include securing the necessary legal and contractual framework, progressing more than 8 MTPA of off-take toward long-term sales contracts, and advancing project financing.
Last month, Anadarko announced its plan to cut its budget by nearly 50%, as it posted a full year net loss of $7 billion.
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