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Anadarko Buying BP's Wattenberg Processing Plant

Anadarko Petroleum Corp. is buying BP America Production Co.'s 93% interest in the Wattenberg Processing Plant for $575.5 million.

The plant in Adams County in northeast Colorado can process up to 195 MMcf/d of natural gas and 15,000 b/d of natural gas liquids (NGL) and gas condensate. Upon closing Anadarko will operate and have 100% ownership of the plant.

Anadarko volumes represent about 70% of the throughput at the Wattenberg Plant, said Chuck Meloy, Anadarko senior vice president of worldwide operations.

"We are the largest producer in the Wattenberg field, with current sales volumes of approximately 63,000 boe/d, and our early efforts in the emerging horizontal Niobrara play are very encouraging," Meloy said. "With the anticipated growth in the DJ [Denver-Julseburg] Basin, we expect this acquisition to improve field recoveries, allow for future expansion and capture efficiencies that enable us to reduce operating expenses.

"The Wattenberg Plant, when combined with Western Gas Partners LP's ownership position in the Fort Lupton Plant [see Daily GPI, Aug. 3, 2010] and the recently acquired Platte Valley Plant, gives Anadarko and other area producers exceptional midstream options for development within the Wattenberg field and growth in the greater DJ Basin."

BP's sale of its stake was planned as part of the company's asset divestiture program announced last year (see Daily GPI, March 4).

Anadarko has about 900,000 net acres in the DJ Basin, and the company expects to be running nine operated rigs, including three horizontal rigs, in the basin by the end of March.

The transaction is expected to close by mid-year, subject to regulatory approvals and contractual conditions.

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