Anadarko Petroleum has ventured beyond its original area of operation -- the Anadarko Basin -- to explore for, develop, produce, and market oil, natural gas, natural gas liquids, and related products worldwide. In 2010 the large independent company reported proved reserves of 1.1 billion barrels of crude oil and 8.1 trillion cu. ft. of natural gas, 89% of which is located in the US. Additional assets include coal, trona (natural soda ash), and other minerals. Anadarko operates a handful of gas-gathering systems in the Mid-Continent. Internationally, the company has substantial oil and gas interests in Algeria, Brazil, China, Indonesia, Mozambique, and West Africa.
Anadarko bulked up its core assets in 2009, announcing nine major deepwater discoveries (primarily in the Gulf of Mexico) and adding some 314 million barrels of oil equivalent in proved reserves. The additional reserves helped fulfill the company's plans for future revenue growth, partially mitigating a poor financial performance in 2009, which saw a decline in total revenues caused by the economic recession, low commodity prices, and the global slump in oil demand.
In addition to growing its oil and gas reserves by exploring in high-potential, proven basins, the company is seeking to maintain a tight ship financially. In 2009 it sold $210 million of midstream assets located in the Powder River Basin to Western Gas Partners.
The company held a minority stake in the ill-fated Deepwater Horizon rig in the Gulf of Mexico, operated by BP. Despite attempts by BP to make Anadarko liable for part of the clean up costs related to destruction of that rig in 2010 and the devastating oil spill that followed, Anadarko rebuffed such claims, citing BP's negligence.
That year the company reported a 9% growth in sales volumes, while it cut oil and gas operating expenses by 7%. Higher commodity prices and increased production volumes (coupled with cost-cutting measures) lifted Anadarko's revenues and net income in 2010. (Taking advantage of a low price asset, that year Anadarko and Newfield Exploration bought properties in the Maverick Basin in Texas for $310 million from bankrupt TXCO).
To raise cash to help it exploit its US shale assets (a growth segment), in 2011 the company closed a joint venture deal with Korea National Oil (KNOC) under which KNOC paid $1.6 billion for one-third of Anadarko's holdings in the Eagle Ford shale play in South Texas.
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