Anadarko signs $556 million JV for Gulf project

07 03, 2012 by Reuters

Anadarko Petroleum Corp (APC.N) said it entered into a $556 million joint venture with an undisclosed party to develop its deepwater Gulf of Mexico Lucius oil and gas project.

The unnamed buyer, who will get a 7.2 percent working interest in the field, will spend $556 million to fund the project through first production. Production is expected to start in the second half of 2014, Anadarko said.

The company will continue as operator of the project with a 27.8 percent working interest.

Anadarko's other partners in the project include Plains Exploration and Production (PXP.N), Exxon Mobil (XOM.N), Apache Corp (APA.N) and Eni (ENI.MI).

The Lucius development is located about 230 miles offshore the Gulf of Mexico in 7,200 feet of water.

Anadarko is developing the field using a truss spar floating production facility that is currently under construction.

The spar is being built with the capacity to produce more than 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day.