Norwegian company StatoilHydro, Oslo, (Oslo: STL) plans to acquire Anadarko Petroleum Corp.’s, Houston, (NYSE: APC) 25% interest in the BP-operated Kaskida Unit in deepwater Gulf of Mexico and its 50% interest in Peregrino Field offshore Brazil for US$1.8 billion in cash, plus consideration valued at US$300 million, for a total deal value of US$2.1 billion.

Anadarko will use the proceeds toward debt reduction. Jefferies Randall & Dewey and UBS Securities LLC were advisors to Anadarko.

Anadarko will no longer have an interest in either field.

The US$300-million consideration is a maximum pre-tax value related to Peregrino Field to be earned by 2020, conditional on future oil prices above pre-defined threshold levels. This contingent payment due annually is determined by applying 37.5% to 100% of Peregrino’s production volumes for months when future ICE Brent crude pricing exceeds certain thresholds.

Anadarko’s nonoperated interest in the Kaskida Unit in the Gulf of Mexico includes the Kaskida discovery on Keathley Canyon Block 292 at depths of 5,860 feet, approximately 250 miles southwest of New Orleans. The unit is operated by BP (55%) with Devon Energy Corp., Oklahoma City, (NYSE: DVN) as the other co-owner (20%). StatoilHydro holds several exploration leases in Keathley Canyon. Kaskida was named Discovery of the Year in 2007 by Oil and Gas Investor.

StatoilHydro executive vice president of international E&P Peter Mellbye says, “When selling our assets in shallow water in December, we announced that we would devote our efforts in the deepwater Gulf of Mexico. The Kaskida acquisition fits well in our portfolio and strengthens our position in this core area.”

In Brazil, the Peregrino heavy-oil field includes interest in the BM-C-7, BM-C-529 and BM-C-530 blocks in the Campos Basin 50 miles off the coast of Rio de Janeiro. Expected reserves are 500 million bbl. of oil, excluding identified upside. StatoilHydro expects the field to come onstream in 2010. Planned plateau production from the field is to be 100,000 bbl. per day, which is expected to be reached within the first year. The deal will give StatoilHydro 100% interest and operatorship of the development.

Anadarko retains interest in seven exploration blocks offshore Brazil, covering approximately 1 million gross acres in the Campos and Espírito Santo basins, and plans up to four deepwater subsalt exploration wells.

Anadarko president and chief executive Jim Hackett says, “This transaction…enables us to accelerate the value of these longer-term projects while focusing our capital back into our nearer-term captured-resource potential. With our anticipated double-digit production growth in the Rockies and the inventory of high-impact projects in our development pipeline, we are confident in our ability to achieve our targeted production growth rate of 5% to 9% annually, combined with organic reserve growth, over the next five years.

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