Anadarko Sees Mega-Projects, Shale Gas Driving Strong Growth

Anadarko Petroleum has set a 2010 capital pending plan of $5.3 billion to $5.6 billion, and expects an average annual production growth rate of 7% to 9% during the next four years.

Production growth will be driven by development of the company’s shale gas holdings in the onshore US and several oil-weighted, deepwater “mega-projects” spread across the world.

Shale gas plays are also expected to play an important role in Anadarko’s 7% annual growth rate projections. The independent has allocated $530 million (10%) of its projected 2010 spending to the Marcellus, Haynesville, Eagle Ford and Pearsall shale plays, where it holds a combined 600,000 net acres.

Production from the four emerging shale gas plays is expected to increase 60% annually over the next five years. Anadarko estimates they contain some 50 trillion cubic feet of natural gas equivalent of gross unrisked resources.

Anadarko recently partnered with Japan’s Mitsui in the Marcellus play, where it already had a separate partnership in place with Chesapeake Energy. The firm held 350,000 net acres in the play before the Mitsui deal was unveiled on Feb.2.

Source: The Oil Daily, March 2, 2010