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- 1. Exploration Update Anadarko MozambiqueArea 1, Lda John Peffer Managing Director
- 2. 1 Anadarko Petroleum Corporation Oneof the World’s Largest Independent Oil and Natural Gas Exploration and Production Companies 2.3 BBOE of Proved Reserves at Year-end 2009 Produce Approximately 575,000 barrels of oil equivalent per day Total Assets of Approximately $48 Billion at Year-end 2008 Presented with the “Independent Player in Africa” Award for our Activity in North, West & East Africa at the 2009 Africa Upstream Conference in Cape Town
- 3. 2 Exploration and productionis our business – our only business. We don’t operate refineries or gasoline stations. Anadarko is an industry leader in adding new reserves through the exploration drilling. 2 Anadarko Petroleum Corporation
- 4. 3 Technology is aStrong Suit Subsalt Exploration Expertise Unconventional Resource Expertise Seismic Imaging Spar Technology FPSO Experience
- 5. 4 Committed to Safety& Environment When Undertaking a New Project, We: Attempt to understand the environmental issues and cultural considerations of an area Create a balanced plan to protect the locations in which we operate Adhere to the stricter of two standards: our own policies and principles or an individual country’s regulations A Safety-First Culture is a Way of Life at Anadarko
- 6. 5 Giving Back tothe Community Anadarko is Committed to Being an Integral Part of the Communities Where We Live and Work. Our employees find personal energy to lend a helping hand to participate and organize projects for specific needs in our communities. Our volunteers partner with Habitat for Humanity to build homes for those in need in the U.S., construct libraries for elementary schools in China and provide training in local handicrafts to women in the Southern Sahara.
- 7. 6 Focused Exploration inHigh-Potential Basins Early Entry with Material Acreage Positions Technically Driven with Commercial Mindset Success De-Risks Inventory GULF OF MEXICO • Pliocene/Miocene • Lower Tertiary • ~3 MM Gross Acres BRAZIL • Pre-Salt • ~1 MM Gross Acres WEST AFRICA • Cretaceous Fan • ~8 MM Gross Acres EAST AFRICA • Tertiary/Cretaceous • ~14 MM Gross Acres SE ASIA • Tertiary • ~7 MM Gross Acres NEW ZEALAND • Cretaceous • ~9 MM Gross Acres March 2010
- 8. 7 High-Graded Asset Base ALASKA U.S.ONSHORE DEEPWATER GOM BRAZIL ALGERIA CHINA WEST AFRICA MOZAMBIQUE INDONESIA EXPLORATION GAS PRODUCTION OIL PRODUCTION PRODUCTION RESERVES Depth, Balance and Resiliency NEW ZEALAND
- 9. 8 U.S. Onshore NaturalGas Top 5 U.S. Onshore Natural Gas Producer Focus on Margins and Efficiencies Control of Midstream Infrastructure Production and Reserve Growth Flexibility Low-Risk, Multi-Tcfe Resource Base Adding to Position With Emerging Resource Plays Commercial Focus with Competitive Edge POWDER RIVER GNB WATTENBERG GREEN RIVER CHALK CARTHAGE BOSSIER EXPLORATION ACTIVITY MARCELLUS 30+ Tcfe Gross Unrisked EAGLEFORD ~6 Tcfe Gross Unrisked HAYNESVILLE ~9 Tcfe Gross Unrisked YE08 Reserves 10.2 Tcfe Net Lower-Risk Captured Resources 19+ Tcfe 3Q09 Net Sales 2.2 Bcfe/d Net Acreage ~15 Million
- 10. 9 APC INTERESTS NANSEN BOOMVANG GUNNISON CONGER BALDPATE REDHAWK TAHITI CONSTITUTION NEPTUNE POMPANO BLIND FAITH INDEPENDENCE HUB SHENANDOAH CAESAR / TONGA DEVELOPMENT HEIDELBERG POWER PLAY Gulf of Mexico Acreage: Average 64% WI in 596 Blocks Track Record: Ownership in 26 Producing Fields Infrastructure: 11 Hubs and 27 Subsea Systems Project-Management Skills: Industry Leader Robust Development Pipeline: New Development and Discoveries Premier Deepwater Position 2009 APC DISCOVERIES YE08 Reserves 0.3 BBOE Net Lower-Risk Captured Resources 0.6 BBOE 3Q09 Net Sales 162 MBOE/d Net Acreage ~2 Million SAMURAI K2 COMPLEX VITO LUCIUS
- 11. 10 Worldwide Exploration DrillingResults Anadarko 2008 2007 2006 Total Exploration Wells Drilled 28 55 76 Success 16 34 63 Failure 12 21 13 Success Rate 0.57 0.62 0.83 Failure Rate 0.43 0.38 0.17 Exxon 2008 2007 2006 Total Exploration Wells Drilled 28 35 33 Success 19 19 21 Failure 9 16 12 Success Rate 0.68 0.54 0.64 Failure Rate 0.32 0.46 0.36 Source: Anadarko 2008 Annual Report Source: Exxon 2008 Financial & Operating Review 2009 Statistics show ~ 80% success rate (net well basis) on increased activity compared to 2008
- 12. 11 On Time, OnBudget Delivery Pompano 1,300 ft Baldpate 1,650 ft Neptune 1,930 ft Gunnison 3,149 ft Boomvang 3,453 ft Nansen 3,678 ft Marco Polo 4,300 ft Constitution 4,970 ft Red Hawk 5,300 ft Blind Faith 6,490 ft Independence Hub 8,000 ft Average Range of UIBC Companies 2007 2008 2006 Low Cost Fast Performance Anadarko is Faster and Lower Cost 2009 FPSO Subsea System
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- 14. 13 Concession Areas Gross Acreage:6.4 Million Gross Acreage: 6.4 Million Mnazi Bay Gas Field Mnazi Bay Gas Field ONSHORE BLOCK APC Operator 35.7% ENH – 15% Artumas WI 49.3% ONSHORE BLOCK APC Operator 35.7% ENH – 15% Artumas WI 49.3% OFFSHORE AREA 1 APC Operator WI 36.5% ENH – 15% Mitsui WI 20% Bharat / Videocon WI 20% Artumas 8.5% OFFSHORE AREA 1 APC Operator WI 36.5% ENH – 15% Mitsui WI 20% Bharat / Videocon WI 20% Artumas 8.5% 0 20 Kilometers 0 20 Kilometers RovumaOnshore Block Rovuma Rovuma Onshore Onshore Block Block Anadarko Mozambique Exploration RovumaOffshore Area 1 Rovuma Rovuma Offshore Offshore Area 1 Area 1 OFFSHORE AREA 1 AMA1 Operator WI 36.5% ENH – 15% Mitsui – 20% BPRL/Videocon – 20% Cove – 8.5% ONSHORE BLOCK AMA1 Operator WI 35.7% ENH – 15% Artumas – 15.3% Maurel & Prom – 24 % Cove – 10%
- 15. 14 Offshore Work ProgramCommitment Rovuma Offshore Area 1 First Exploration Period (5 years) • Re-process 1,000 km existing 2D seismic • Re-interpret 5,150 km of existing 2D seismic • Acquire minimum of 1,000 km of 2D seismic • Acquire a minimum of 3,000 km2 of 3D seismic • Drill 7 Exploration Wells – 4 in deep water (> 200 m water depth) » Discovery with first well (Windjammer) » Currently drilling second well (Collier) » Final commitment wells to be drilled in 2010 – 3 in shallow water (< 200 m water depth) • Minimum work program expenditure - $268MM – Current estimated expenditure > $700MM
- 16. 15 Offshore Work ProgramCommitment Rovuma Offshore Area 1 Second Exploration Period (3 years) • Election to be made by end of 2011 • Acquire a minimum of 2,000 km2 of 3D seismic • Drill 4 Exploration Wells • Minimum expenditure $195MM
- 17. 16 Onshore Work ProgramCommitment Onshore Rovuma Block Assumed Operatorship from Artumas 1/1/09 First Exploration Period (3 years) • Acquire minimum of 250 km of 2D seismic • Drill one exploration well to a depth of 3505m • Minimum expenditure $20MM – Actual expenditure > $80MM Second Exploration Period (3 years) • Election to be made by 1 September 2010 • Acquire minimum of 100 km2 of 3D seismic • Drill one exploration well Third Exploration Period (2 years) • Drill one exploration well √ √
- 18. 17 Mozambique Exploration PhaseI Timeline 2009 2010 2007 2008 Offshore Area 1 concession awarded 2D deep water seismic program 2D Reprocessing Project 3D seismic Area 1 2D shallow water seismic program 2011 2012 Area 1 Phase I Expiration Onshore Block well Shallow water wells (3) Deep water wells (4) Onshore Block Phase I Expiration 1st Exploration Phase Offshore Area 1: Guarantee $268MM / Expect to Spend $738MM Onshore Block: Guarantee $ 20MM / Expect to Spend $87MM 2D seismic onshore Potential Appraisal drilling TODAY Onshore Rovuma concession awarded
- 19. 18 Mozambique Project Evolution 2007Signed EPC’s Existing Database • 2475 km on Area 1 •1460 km 2D Onshore •Data from 2 Onshore Wells 2009 Data Acquisition • 2000 km 2D <50m WD • 2900 km 2D >50m WD 2008 Data Acquisition • 3300 sq km 3D, largest proprietary APC 3D • 465 Km 2D deepwater • 642 km 2D land areas • Traded for data from 3 Mnazi Bay wells Mnazi-1 Mocimboa-1 Mocimboa-1 Mnazi-1 Q2 2009 - 2010 Drilling • 4 Deep Water Wells • Onshore Well
- 20. 19 DATA: SEISMIC ACQUISITION MarineAcquisition Rovuma Area 1 2008 & 2009 Marine Acquisition in Mozambique S/V Munin Explorer 2D Deep Marine S/V Challenger 3D Deep Marine S/V Geo Mariner 2D Shallow Marine Air bubble Streamer
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- 22. 21 Mozambique: High-Potential FrontierBasin Windjammer Discovery 1st Offshore Well in Rovuma Basin 480 Net Feet of Pay De-Risked Hydrocarbon System 50+ Prospects and Leads 2010 Activity Drill Collier Prospect Drill 2 - 4 Additional Exploration Wells Mnazi Bay 3D Outline APC Operator ONSHORE BLOCK (APC WI 42%) APC Operator OFFSHORE AREA 1 (APC WI 43%) 0 15 Miles Mecupa MECUPA WINDJAMMER W ROVUMA ONSHORE ROVUMA OFFSHORE E Cretaceous Jurassic Cenozoic WINDJAMMER DISCOVERY Gross Acreage: ~6 Million ANADARKO WI BLOCK PROSPECT DISCOVERY 2010 PLANNED EXPL DRILLING 2009 EXPL DRILLING Collier
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- 25. 24 Windjammer Discovery Drilled in1465m Water Depth Total Depth 5161m below sea level (SS) Discovered Natural Gas in two zone Oligocene at 3200mSS • 146m of natural gas pay Paleocene at 4975mSS • 23m of natural gas pay Ranked #1 most important discovery worldwide to date in 2010 by IHS
- 26. 25 Rovuma Delta –First 2 Discoveries Well penetrations at 4 localities 2 discoveries Windjammer – Mozambique Mnazi Bay - Tanzania Proven source Age? Distribution? Character? Future discoveries? Oil/gas distribution? Areal extent? Rovuma Delta Today Oil Field Gas Field Mnazi Bay Windjammer
- 27. 26 Analog Deltas Niger DeltaDiscoveries (1938 to Present) Oil Field Gas Field
- 28. 27 Analog Deltas Niger DeltaExploration Wells Number of wells: 1407 1938 - Present Niger Delta Exploration Wells: Success Number of wells: 793 Success rate: 56% Niger Delta Exploration Wells: Failure Number of wells: 614 Failure rate: 44% >60 Billion barrels of oil equivalent Risk versus Reward
- 29. 28 2010 Work Program Completedeep water exploration drilling commitment Integrate well data and seismic data Evaluate development options for gas and oil (if discovered) Consider possible appraisal/testing in 2011 Election on Phase II exploration program Rovuma Onshore Block
- 30. 29 Final Remarks Windjammer animportant discovery Confirms there is hydrocarbon potential in the Rovuma Basin deep water areas Still early in the Exploration Phase Developing remote gas reserves is a long process; likely: Will require an LNG Project Will require threshold reserves Will require appraisal of resources Will require a long-term LNG contract Will require FNLG or shore-based liquefaction plant We are still exploring for Liquids!
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