Anadarko Finalized Agreement with ExxonMobil to Develop Lucius Field

Anadarko Petroleum Corporation has finalized a unitization agreement with ExxonMobil Corporation and co-owners to develop the Lucius field in the deepwater Gulf of Mexico. The unitization includes portions of Keathley Canyon Blocks 874, 875, 918 and 919. Anadarko will operate the unit with a 35% working interest. Following the unitization agreement, the Lucius interest owners entered into an agreement with the Hadrian South co-venturers whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades. Anadarko reports that it has already placed orders for long-lead items, including the truss spar floating production facility, which will have a capacity of over 80,000 b/d of oil and 450 MMcfd of natural gas. The company expects sanctioning the project later this year, with first production expected in 2012.