With Occidental Petroleum finalizing its $38 billion acquisition of Anadarko Petroleum last week, Oxy is now lowering its oil and gas production guidance for the legacy Anadarko assets.
For the rest of this year, Oxy said Anadarko’s assets will see lower production volumes by at least a couple of percentage points than anticipated because of pipeline shortages and maintenance and weather-related downtime in the Gulf of Mexico and other regions.
Oxy pointed to Anadarko having delays in West Texas’ booming Permian Basin bringing new wells online, as well as issues in Colorado’s DJ Basin regarding temporary shortages of oil and gas processing facilities.
All of the issues are considered temporary and are unrelated to Occidental’s operations, the company said.
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The 2019 capital budget for the Anadarko assets will remain at $4.1 billion, not counting Anadarko’s Africa assets, which are in the process of being sold to the French energy major Total for $8.8 billion.
For the third quarter, the legacy Anadarko assets in the U.S. will produce 585,000 to 630,000 barrels of oil equivalent a day. For the full year, the minimum average is 605,000 barrels daily with the same 630,000-barrel, upper-end estimate.
