Anadarko has announced its 2009 capital program and provided guidance for the year. Total capital expenditures, including expensed geology and geophysics (G&G) are expected to be between $4.0 and $4.5 billion. The capital program allocates approximately 20 percent for exploration and appraisal activities and 20 percent for the company's mega-projects, including such developments as the Jubilee field offshore Ghana, the Caesar/Tonga complex in the deepwater Gulf of Mexico and the El Merk project in Algeria.
"We believe that a strong commitment to executing upon our world-class exploration program and developing the outstanding mega-projects in our portfolio is the best path forward for our stakeholders," Anadarko Chairman and CEO Jim Hackett said. "Although 2009 will be a challenging year for our industry, we feel a prudent level of funding is appropriate given the economic quality of our current portfolio. We view our capital allocation decisions as an ongoing process, thus we will continue to closely monitor economic conditions and manage our spending to enhance shareholder value, while maintaining a strong balance sheet."
The company's 2009 capital program by area is approximately:
"Our exploration program has been delivering differentiating success, with some of the world's largest discoveries during the last two years," explained Hackett. "We have an abundance of high-quality projects worldwide, in areas where we can effectively apply our deepwater skill sets and project-execution expertise. These include the Jubilee-field development offshore Ghana and the Caesar/Tonga complex in the deepwater Gulf of Mexico."
Anadarko plans to maintain an active exploration and appraisal program in 2009 by investing approximately 20 percent of its capital program in global exploration projects. This includes four to six high-impact exploration/appraisal wells in the deepwater Gulf of Mexico and approximately 20 high-potential gross wells internationally, more than a dozen of which have resource targets of more than 100 million barrels of oil equivalent (BOE) per prospect. The company also plans to continue pursuing the positive results achieved to date with its Marcellus acreage in Pennsylvania, along with other onshore plays.
Approximately 20 percent of the 2009 capital program is allocated toward the company's mega-projects, led by the giant Jubilee field offshore Ghana, the Caesar/Tonga complex in the deepwater Gulf of Mexico and the El Merk project in Algeria. Each of these projects is expected to be a significant catalyst for value creation and additive to the company's future growth trajectory. In addition to the mega-projects listed above, the company recently announced a major discovery at its Wahoo pre-salt prospect offshore Brazil and two additional significant discoveries at Heidelberg and Shenandoah in the deepwater Gulf of Mexico, which are expected to provide opportunities for future appraisal and development activities.
"We expect to increase sales volumes over the 2008 level of 206 million BOE with only half of the 2009 capital program directed toward our near-term development projects," added Hackett.
Anadarko's average daily sales volumes for 2009 are projected to be in the range of 208 million to 212 million BOE.
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