Yahoo Finance Anadarko Hits Oil in Cote d'Ivoire
Independent oil and gas producer Anadarko Petroleum Corporation (APC) made a light oil discovery in offshore Côte d'Ivoire (Ivory Coast). The Paon-1X exploration well successfully drilled oil in the CI-103 block and encountered 100 net feet (31 meters) of light oil in Turonian-aged reservoirs. The exploration well was drilled at a total depth of approximately 16,700 feet (5,090 meters) and encountered about 7,195 feet (2,193 meters) of water.
Anadarko holds a 40% working interest in the CI-103 block. Tullow Oil plc is the operator with a 45% working interest, and Société Nationale d'Opérations Pétrolières de Côte d'Ivoire (Petroci) holds the remaining 15% interest in the block. The partnership for the time being intends to suspend the Paon 1X well to use it later in appraisal and development operations.
Anadarko has been actively carrying out exploration activities in this region. It has tasted drilling success in offshore Ghana, with both Ntomme-2A and Enyenra-4A appraisal wells encountering oil. The company along with its partners has also successfully located hydrocarbon in the Jupiter-1 prospect in offshore Sierra Leone.
The high oil and gas reserves potential in the African subcontinent has been attracting major global oil and gas producers. These oil majors are in a perpetual search of replenishing their reserves to meet the ever increasing demand for fossil fuel. African exposure now accounts for a major source of generation. As a case in point, TOTAL S.A. (TOT) derived 30% of its total production in the first quarter 2012 from African operations.
We however note that despite having a substantial volume of fossil fuel reserves, the political instability in some of the African nations might act as a deterrent against investment in this region. Political upheavals and terrorist threats at times derail operations and jeopardize production and profitability of the operators. In 2011, Anadarko temporarily suspended operations in Ivory Coast due to violence and instability in the wake of disputed elections.
Anadarko Petroleum Corporation currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
Woodlands, Texas-based Anadarko Petroleum Corporation is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and natural gas liquids.
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