Anadarko Q1 loss shrinks

Woodlands-based Anadarko on Tuesday said the company’s losses narrowed in the first three months of the year as its reduced costs amid low oil and gas prices.

Anadarko posted a net loss of $1.03 billion, compared with a net loss of $3.27 billion in the same quarter a year ago.

The company said earlier this year it will slash its 2016 spending by almost 50 percent, and expects minimal funding in its Mozambique LNG project as it works toward a final investment decision (FID) for the project.

Anadarko expects capital investments will be in a range of $2.6 billion to $2.8 billion in 2016, down by almost 50 percent as compared to the year before.

According to Anadarko, first-quarter capital investments of $756 million, excluding Western Gas Partners, were below the low end of guidance of $800 million and 55% lower than the capital investments in the 1st quarter of 2015.

Anadarko’s capital investment in Mozambique totalled $21 million in the first quarter. Anadarko and partners have discovered more than 75 Tcf of recoverable natural gas resources in Mozambique’s Offshore Area 1, which will be used to feed an initial two-train LNG development.

“The partnership continues to work with the Government of Mozambique to progress the agreements and approvals required to support the investment,” Anadarko said.

LNG World News Staff