Switching its focus slightly from exploration to development drilling, Anadarko Petroleum Corp. said last week that 2003 and 2004 are going to be exciting times for the company as past exploration efforts finally come to fruition. Holding an all-day webcast for analysts Thursday, the company said that in addition to shifting focus to the development side of the business, the company also is realigning resources to concentrate on its U.S. onshore plays.

“What you will see today is a program for 2003 and 2004 that is based on heavy spending over the last three or four years,” said Anadarko CEO John Seitz. “We are getting ready to harvest, to drill the wells from those seismic and leasehold expenditures beginning in 2003. That is why we are pretty excited about this year. It is going to be a very significant year for Anadarko; it’s going to be another breakout year.”

As a result, Anadarko’s $2.3 billion capital program for 2003 is scaled back on exploration and more heavily weighted toward development drilling. The company allotted $380 million (17% of total spending) toward exploration and $940 million (41%) toward drilling development. The company has also positioned $535 million (23%) toward construction and other development.

“We have focused on the deepwater Gulf of Mexico in the deep shelf, [and] obviously we have enjoyed great success in East Texas/North Louisiana through the Bossier [trend], the Rockies through the land grant and Canada,” said Seitz. “These are key core growth areas that let us apply a set of technology and experience that has greater success and drive down costs.”

On the regional breakout in 2003, Anadarko allotted $795 million to U.S. onshore activity: $460 million in U.S. offshore, $360 million for Canada, $60 million in Alaska, $100 million to Algeria and $140 million for other international activity.

“We are not the company we were when I came to work for Anadarko in 1977,” Seitz added. “We have a broader, more diverse portfolio than ever.”

As of the beginning of March, the company said it has 72 rigs currently operating and is participating on another seven. Anadarko said 32 rigs are currently operating in Texas/Louisiana, nine in the Gulf of Mexico, five in the Permian Basin, six in the Midcontinent, six in the western states, 20 in Western Canada and one on the North Slope of Alaska.

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