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Anadarko plans to invest $1.1bn in deepwater Gulf of Mexico in 2018

Anadarko Petroleum has allocated $1.1bn for investment in its deepwater Gulf of Mexico operations in 2018.

The investment is part of firm’s total capital investment program which is in the range of $4.2bn to $4.6bn in 2018 to advance development of its core assets.

Anadarko said it plans to allocate approximately 80% of total capital investment toward the Delaware and DJ basins, including Anadarko midstream, and the deepwater Gulf of Mexico.

The firm said it would mainly investment in high-return oil development opportunities near operated infrastructure at Lucius, Horn Mountain, Marlin, Holstein and Marco Polo.

Anadarko chairman, president and CEO Al Walker said: "We expect next year's capital expenditures to be inside of discretionary cash flow at $50 and $3, while generating free cash flow of more than $700m at the current strip.

“Further, we plan to return substantial cash to shareholders by executing the remaining $1.5bn of our $2.5bn share-repurchase program during the coming year."

In addition to operating two floating drillships, the firm intends to spud approximately five development wells in the Gulf in 2018.

About $200m is also planned to be invested in exploration programs with primary focus on the Gulf of Mexico, in the coming year.

Anadarko will also invest approximately $150m to advance the Mozambique LNG project.

Walker added: "We are also modifying the metrics in our 2018 compensation program to increase the profile for the role of capital efficiency and financial discipline and refine the focus on our safety performance.”

Elsewhere, Anadarko is considering investment of more than $150m in cash-generating operations in Algeria and Ghana.