Anadarko Corporate Journal

Only available on StudyMode
  • Topic: Oil companies of the United States, Petroleum, Revenue
  • Pages : 37 (5068 words )
  • Download(s) : 26
  • Published : February 28, 2013
Open Document
Text Preview

Chris Cormier
5-2-12
FINC 3330.01

Corporate Journal

[pic]

Anadarko’s mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and natural gas resources vital to the world’s health and welfare.

Anadarko Petroleum Corporation is one of the world’s largest independent oil and gas exploration and production companies, with approximately 2.3billion barrels of oil equivalent (BOE) of proved reserves and production of 206 million BOE as of December 31, 2008. Anadarko, historically a subsidiary of Panhandle Eastern Corporation, was formed in 1959 after the discovery of large amounts of natural gas in the Anadarko Basin (the basin comprises the Texas and Oklahoma panhandles, and southwest Kansas), thus the company's name. Anadarko spun off from Panhandle Eastern as an independent corporation in 1986 and now has activities in more than a dozen countries. The United States, deepwater Gulf of Mexico and Algeria represent the majority of the company's proved reserves and production; U.S. onshore accounts for about 60%. Anadarko is committed to safely producing the energy we all need in a manner that protects the environment, public health and supports our communities. Energy is fundamental to physical existence. It is as important as clean air, water and affordable food. At Anadarko, we take our responsibility seriously to safely deliver resources to our energy-hungry world, and we hold true to our core values of integrity and trust, servant leadership, commercial focus, people and passion, and open communication in all of our business activities. Anadarko is among the largest independent oil and natural gas exploration and production companies in the world, with 2.54 billion barrels of oil equivalent (BBOE) of proved reserves at year-end 2011. The company's portfolio of assets encompasses premier positions in U.S. onshore shales and resource plays in the Rocky Mountains region, the southern United States and the Appalachian Basin. The company also is a premier deepwater producer in the Gulf of Mexico, and has production in Alaska, Algeria, and Ghana with additional exploration opportunities in West Africa, Mozambique, Kenya, South Africa, New Zealand and China.

Deepwater Horizon Oil spill involvement

Anadarko had 25 percent working interest in the Macondo Prospect, which was operated by BP and its finances were affected by the Deepwater Horizon oil spill. BP has billed Anadarko more than $272 million for its share of cleanup and response costs in the Gulf, according to a bill that was sent by BP and obtained by TPMMuckraker. Anadarko publicly suggested that it will not pay for costs associated with the oil disaster, claiming in a statement that BP was guilty of gross negligence or willful misconduct. Under the joint operating agreement, Anadarko must pay its portion of costs related to any incident—unless that incident was caused by its partner's gross negligence or willful misconduct. In what was seen as possibly a precursor to Anadarko's own course, in May 2011 MOEX Offshore agreed to pay US$1.07 billion to settle BP claims against it over the accident. MOEX owned a 10% stake in the well through a subsidiary and in turn itself was majority-owned by Mitsui & Co. Some analysts had thought BP would realize a larger settlement from MOEX but there was also relief to have a first step toward resolving the multiple claims. In October, 2011, Anadarko did in fact follow MOEX and agreed to settle with BP for $4 billion. BP agreed to "forgo reimbursement for future costs related to the incident and will indemnify Anadarko for damage claims arising under the U.S. Oil Pollution Act, among other costs. And Anadarko will transfer its 25% stake in Mississippi Canyon Block 252 (Macondo) to BP." Company Name: Anadarko Petroleum Corporation

Form of Business Organization:...
tracking img