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ANADARKO PETROLEUM CORPORATION
                                                                        2008



                                                                 Operations Report
                                                                                            Third Quarter




Investor Relations:

John Colglazier
Vice President
john.colglazier@anadarko.com
832.636.2306

Chris Campbell, CFA
Manager
chris.campbell@anadarko.com
832.636.8434

Danny Hart
Manager
danny.hart@anadarko.com
832.636.1355




Forward Looking Statement . . . 2
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Drilling Efficiencies . . . . . . . . . . . . . . 4
Rockies . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
Southern. . . . . . . . . . . . . . . . . . . . . . . . 7-8
Gulf of Mexico. . . . . . . . . . . . . . . . . 9-13
International / Frontier . . . . . . 14-16




                                                                                NYSE:APC   www.anadarko.com
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                 Forward Looking Statement




Cautionary Note to U.S. Investors: The United States Securities     This report contains forward-looking statements within the
and Exchange Commission (“SEC”) permits oil and gas                 meaning of Section 27A of the Securities Act of 1933 and Section
companies, in their filings with the SEC, to disclose only proved   21E of the Securities Exchange Act of 1934. Anadarko believes
reserves that a company has demonstrated by actual production or    that its expectations are based on reasonable assumptions. No
conclusive formation tests to be economically and legally           assurance, however, can be given that such expectations will prove
producible under existing economic and operating conditions.        to have been correct. A number of factors could cause actual results
Anadarko uses certain terms in this operations report, such as      to differ materially from the projections, anticipated results or
“estimated recoverable resources,” “recoverable oil” and similar    other expectations expressed in this operations report. Anadarko
terms that the SEC’s guidelines strictly prohibit Anadarko from     cannot guarantee that it will successfully execute on its
including in filings with the SEC. U.S. Investors are urged to      exploration, drilling and development plans or meet its
consider closely the disclosure in Anadarko’s Form 10-K for the     production guidance. See “Risk Factors” in the company’s 2007
year ended December 31, 2007, File No. 001-08968, available from    Annual Report on Form 10-K and other public filings and press
Anadarko at www.anadarko.com or by writing Anadarko at:             releases. Anadarko undertakes no obligation to publicly update or
Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The        revise any forward-looking statements.
Woodlands, Texas 77380 Attn: Investor Relations. You can also
obtain this form from the SEC by calling 1-800-SEC-0330.


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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                                             Overview
                                                                                                      – RIG ACTIVITY –

                                                                                                           3Q08 Rig Activity
                                                                                                Operated Non-Operated             Total
                                                                                                  32
                                                                                    Rockies                                       100
                                                                                                              68
                                                                                                  27
                                                                                  Southern                                         39
                                                                                                              12
                                                                                                  59
                                                                                LOWER 48                                          139
                                                                                                              80
                                                                                                    1
                                                                                     Alaska                                          2
                                                                                                               1
                                                                                                    4
                                                                             Gulf of Mexico                                          5
                                                                                                               1
                                                                                                  64
                                                                               TOTAL U.S.                                         146
                                                                                                              82
                                                                                                    3
                                                                          INTERNATIONAL                                              5
                                                                                                               2
                       – CAPITAL SPENDING –
                                                                                                  67
                                                                         TOTAL COMPANY                                            151
                                                                                                              84

! The capital program totaled $1,181 million during the quarter.
  Full-year capital expenditures are expected to be between $4,650
  and $4,750 million (excluding expensed exploration) with                                                – VOLUMES –
  approximately 20% allocated to exploration.
                                                                       ! Sales volumes for the 3rd Qtr were 51 MMBOE, which was within
                                                                         guidance (51-53 MMBOE), overcoming approximately 4.7
                                                                         MMBOE of storm-related shut-ins during the period.
                                    Capital Spending*
                                                  2Q08
                                     3Q08
                                                                                                           Net Volumes (MMBOE)*
                                     $ MM         $ MM                                                                         3Q08
                                                    338
                                       422
                       Rockies                                                                                               % Change
                                                    272
                                       282
                      Southern                                                                3Q08       2Q08    3Q07** vs. 2Q08   vs. 3Q07
                                                    609
                                       704
                    LOWER 48                                                                   20         20      17        0%        18%
                                                                                Rockies
                                                     30
                                        10
                        Alaska                                                                 10         11       11      -6%         -3%
                                                                              Southern
                                                    289
                                       196
                Gulf of Mexico                                                                 30         31      27       -2%        10%
                                                                            LOWER 48
                                                    928
                                       910
                   TOTAL U.S.                                                                   2          2        2     -12%       -16%
                                                                                 Alaska
                                                    100
                                        99
            INTERNATIONAL                                                                      12         11      10        6%        17%
                                                                         Gulf of Mexico
                                                    133
                                       109
                     Midstream                                                                 43         44      39        0%        10%
                                                                           TOTAL U.S.
                                                     71
                                        63
      Capitalized Items / Other                                                                 7          7        7       8%          5%
                                                                      INTERNATIONAL
                                                  1,232
                                     1,181
           TOTAL COMPANY                                                                       51         50      47        1%          9%
                                                                     TOTAL COMPANY

                *Data may not add to totals due to rounding.                              * Data may not add to totals due to rounding.
                                                                                          ** 3Q07 volumes exclude divested volumes.


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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



         Drilling Efficiencies
                                  3Q08 Drilling Efficiencies*
                             Spud to          Rig           Spud
                           Rig Release     Mobilization    to Spud
                                 2%                            8%
                                                23%
Greater Natural Buttes
                                10%                           17%
                                                48%
          Wattenberg
                                20%                           21%
                                                24%
            Carthage
                                 7%                            7%
                                                16%
                Chalk
                                14%                           16%
                                                28%
           Freestone
                         * Percent change from 2007 results.
                           Note: Company-operated development-drilling programs with at least
                                 three rigs on day rate contracts.




                         – DRILLING EFFICIENCIES–

Anadarko has greatly enhanced drilling efficiencies across all of the
company-operated, major development-drilling programs that utilize
day-rate contracts. Increasing efficiencies in these major programs has
enabled Anadarko to execute upon the programs without increasing
capital during historic inflation in the industry. The chart above shows
nearly double-digit improvement in each area in 2008 when compared
to 2007 results.




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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                                                               Rockies
                                                                                                                                                             Gross
                                                                                                                                        Rig Activity     Completed Wells
                                                                                          Net Volumes*                      Capital*
                                                                                                                                           3Q08              3Q08
                                                                                      3Q08                                   3Q08
                                                                                                       2Q08
                                                                                                                                                          Expl.   Dev.
                                                                                                                                       Oper.   Non-Op.
                                                                                                                             $ MM
                                                                              MMcf/d MBbls/d         MMcf/d    MBbls/d
                                                             TIGHT GAS
                                                    Greater Natural Buttes      261         3          240          4         120        7       1          0      96
                                                              Wattenberg        165        20          174         19         103        8       1          0     111
                                Tight Gas
                   EOR                        CBM
                                                                 Pinedale        54         1           73          1          44        0      28          0      62
                                                               Wamsutter         78         7           70          7          35        1       7          0      49
                                                                     Other       71         3           68          4          17        0       4          0      23
                      Powder   River CBM                             CBM        378         0          379          0          70       15      27          0     287
                                                                     EOR          4        12            4         12          33        1       0          0       4
                                          Salt Creek
               WYOMING                                                        1,011        46        1,008         46         422       32      68          0     632
                                                                  TOTAL
           Pinedale                                                          *Data may not add to totals due to rounding.


           Moxa Monell Wamsutter
                      Monell
                                   Atlantic Rim
       Greater
    Natural Buttes                   Wattenberg
             Helper                                                                    ! Drilling efficiencies continued as 96 wells were completed during
                                                                                         the quarter – an increase of 43% from last quarter, while running
                                                                                         seven operated rigs compared to eight operated rigs last quarter.
            UTAH                     COLORADO
                                                                                       Wattenberg

                                                                                       ! In the 3rd Qtr, Anadarko drilled 104 wells and performed 311 fracs,
               – TIGHT GAS DEVELOPMENT –
                                                                                         surpassing previous records set in the 2nd Qtr. Anadarko is currently
Greater Natural Buttes                                                                   running eight drilling rigs and is on pace to drill more than 380 wells
                                                                                         and perform more than 1,100 fracs this year – a 60% increase over
! Greater Natural Buttes achieved another great quarter – growing                        2007. Planned annual third-party plant maintenance resulted in a
  volumes 9% from the 2nd Qtr and 19% from the 1st Qtr, with a new                       two-week production curtailment.
  gross-operated production record of 330 MMcf/d.


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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                                       Rockies

           – COALBED METHANE DEVELOPMENT –                                               – GREATER GREEN RIVER BASIN –

! Several sales-volumes records were set in September in the Powder        Pinedale
  River Basin (PRB), where volumes rebounded quickly following two
  separate maintenance events on the WIC pipeline system in August         ! Anadarko continues to participate in an active program with 28 rigs
  and early September. Gross sales (operated and non-operated)               currently running in the Pinedale area. Along with our partners,
  exceeded 800 MMcf/d and gross operated sales achieved a single-day         Anadarko spud 202 wells and completed 169 wells through the end of
                                                                             the 3rd Qtr.
  high of 430 MMcf/d.

! PRB development activity accelerated throughout the quarter,             ! The Bureau of Land Management issued a Record of Decision for the
  following the end of seasonal wildlife stipulations. Anadarko and its      Pinedale Final Environmental Impact Statement (FEIS) on Sept. 12
  partner had a combined total of 37 rigs drilling on operated and non-      that provides for year-round drilling and completion activity, which
  operated properties by the end of September. A total of 285 wells were     should result in increased future activity.
  spud during the quarter, an average of over three wells per day.
                                                                           ! Operators shut in approximately 23 MMmcf/d net to Anadarko
                                                                             because of low prices during September, while maintenance was
                                                                             performed on REX. Production has since been restored.
                 – ENHANCED OIL RECOVERY –
                                                                           Wamsutter / Moxa
! Rockies EOR properties surpassed the 10 MMBO cumulative
  production milestone from CO2 operations and are currently               ! In the Wamsutter/Moxa areas, 31 Anadarko-operated wells and 162
                                                                             non-operated wells have been drilled year to date.
  producing over 10,000 Bbl/d.




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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                                                        Southern
                                                                                                                                                           Gross
                                                                                         Net Volumes*                                  Rig Activity    Completed Wells
                                                                                                                          Capital*
                                                                                  3Q08                                                    3Q08             3Q08
                                                                                                                           3Q08
                                                                                                          2Q08
                                                                                                                           $ MM                         Expl.   Dev.
                                                                            MMcf/d MBbls/d                                            Oper.   Non-Op
                                                                                                  MMcf/d     MBbls/d
                                                                              90                                             56         5       3        0        6
                                                               Haley                  1             84         0
                                                                              32                                              3         1       0        0        9
                                                             Ozona                    1             41         1
                                                                              56                                              4         0       0        0        1
                                                      Mid-Continent                   2             59         1
                                                                             145                                             28         3       1        0        4
                                                            Bossier                   0            156         0
                                      Marcellus
                                                                              85                                             67         5       2        0       31
                                                          Carthage                    5             82         5
                                                                              41                                             60         8       2        0        5
                                                               Chalk                 11             44        12
                                                                              84                                             64         5       4        0       13
                                                    S. Texas / Other                  5             92         5
             Hugoton                                                         532                                            282        27      12        0       69
                                                            TOTAL                   25             557        24

                                                                           *Data may not add to totals due to rounding.

    Haley
               Bossier Carthage
                        Haynesville
            Ozona                                   Tight Gas
                       East Chalk
             Maverick
                                                    Fractured Reservoirs

                                                    Other
                                                                                      Chalk
                  South Texas

                                                                                      ! The Chalk team continued an active drilling program with eight
                                                                                        operated rigs running throughout the quarter. Seven wells were
All production in the Southern Region has been fully restored.                          spud and six wells were completed.
However, following Hurricane Ike, production was curtailed for a
number of days across the region due to damages sustained by third-                   Bossier
                                       rd
party infrastructure. The cumulative 3 Qtr volume impact in the
region was approximately 0.3 MMBOE.                                                   ! At the end of the quarter, the Bear Grass field reached a gross
                                                                                        production record of 45 MMcf/d. The team also successfully tested
Carthage                                                                                the first pilot well on 20-acre spacing in Bear Grass, with
                                                                                        encouraging results that may lead to a 20-acre-spacing development
! The Carthage asset team continued to execute a successful program,                    program. The Bossier asset team ran three rigs throughout the
  completing 22 operated wells.                                                         quarter, with seven wells spud and four wells completed.


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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                                    Southern

Haley / Delaware Basin                                                     Marcellus

! The Anadarko/Chesapeake partnership had eight rigs running in            ! Anadarko's leasehold expanded to approximately 644,000 gross
  the Delaware Basin during the 3rd Qtr, with seven wells spud and six       acres after successful participation in the Pennsylvania State Forest
                                                                             lease sale. Our first horizontal well spud during 3rd Qtr and brings
  wells completed.
                                                                             the total number of wells spud this year to four. Testing of two
                                                                             vertical wells will continue in the 4th Qtr, and we expect to complete
                         – EXPLORATION –
                                                                             another vertical well and our first horizontal well by year end.
Anadarko has completed a number of wells with very encouraging
results in its U.S. onshore exploration program, including the
Maverick Basin, Haynesville and Marcellus Shale plays.

Maverick Basin
                                                                                     Current Drilling
                                                 rd
! Two horizontal wells were drilled during the 3 Qtr for a total of four
  horizontal wells drilled during 2008 (two Eagleford and two Pearsall
  tests). Testing continues in the Eagleford where fracture
                                                             rd
  stimulations and completions commenced late in the 3 Qtr. The
                                                                 th
  Pearsall horizontals will be stimulated and tested during the 4 Qtr.

Haynesville
                                                                                                                           Marcellus Shale
                                                                                                                            Gas Fairway
! Anadarko has more than 80,000 net acres in the prospective fairway
  of the Haynesville Shale, the majority held by production
  underneath our producing fields in the Carthage area in Texas and
  Elm Grove in Louisiana. The first Anadarko-operated Haynesville
                                                rd
  well was spud, drilled and cored late in the 3 Qtr with completion
                          th
  occurring early in the 4 Qtr. Three to four exploratory tests in the
  Haynesville, including one horizontal well, are planned by year end.



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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                   Gulf of Mexico

                                                                                                                            Net Volumes
                                                                                                                     3Q08                   2Q08
                                                                                                             MMcf/d MBbls/d          MMcf/d   MBbls/d
                                                                                                                                                   68
                                                                                                    TOTAL                             301
                                                                                                               448       51




                 – PRODUCING PROPERTIES –
                                                                                                   LOUISIANA
                                                                             TEXAS
                                                                                                                       New Orleans
Once again, Anadarko's operated facilities in the deepwater Gulf of
Mexico proved their robust design and construction by weathering
                                                                                                Baldpate/Conger
several named storms with only minor superficial damage. The
weather did have a significant effect on Gulf of Mexico production,               Power Play
                                                                                                              Constitution
                   rd
with a cumulative 3 Qtr volumes impact of almost 4.5 MMBOE net to            Nansen
Anadarko. However, within a relatively short time frame, repairs were
made. All of Anadarko's operated facilities are operational with
approximately 73% of normal Gulf production back on line. The             Boomvang
                                                                                                                               Independence
remainder is curtailed due to damage to third-party platforms and
                                                                                                                                   Hub
other third-party infrastructure further downstream. As a result of                                                    Marco Polo
these lingering repairs, an additional three to five million barrels of                      Gunnison    Red Hawk
production will likely be deferred and has been factored into the           APC acreage
          th
updated 4 Qtr volume guidance.                                              APC facilities




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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                      Gulf of Mexico
             – PRODUCING PROPERTIES (CONT.) –

Independence Hub                                                            Power Play

! The Independence Hub platform was shut in for approximately 10                 Garden Banks 258/302 (APC 45% WI)
  days in late July/early August for a check up on the third-party export
                                                                            ! Prior to Hurricane Ike, Power Play was brought on line during the 2nd
  pipeline. Upon completion, the facility quickly ramped up to full rates
                                                                                                                                               rd
  and is currently producing approximately 900 MMcf/d gross.                  Qtr and maintained its initial rate of 9,000 BOE/d gross in the 3 Qtr.
                                                                              Due to damages sustained at the Hess-operated Baldpate platform,
                                                                              volumes were subsequently shut-in during the month of October.
                                                                              However, recent repairs to the platform have brought back production
                                                                              at full rate.
               Independence
                    Hub                                                     Marco Polo

                                                                                 Green Canyon 608 (APC 100% WI)
                          San Jacinto
                                                                            ! Anadarko is currently reinjecting approximately 10 MMcf/d of
                                    Spiderman
                                                                              natural gas into the Marco Polo reservoirs and producing at restricted
                              Mondo NW Atlas NW                               rates from the Marco Polo and K2 fields as downstream third-party
                 Q
                                                                              infrastructure damage prevented Anadarko from bringing production
                                           Atlas
                     Merganser
                                                                              back on line at full rate. Anadarko anticipates that downstream repairs
                        Vortex
                                                                              will be complete and full production will be back on line at year end.
                        Jubilee
                                                Cheyenne
                                                                            Boomvang

                                                                                 East Breaks 643/642/688 (APC 30% WI)
                                                                                 East Breaks 598 (APC 100% WI)
                                                                                 East Breaks599 (APC 33% WI)

                                                                            ! The facility experienced no significant hurricane-related damage and
                                                                              is currently producing at pre-storm rates.

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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                     Gulf of Mexico
             – PRODUCING PROPERTIES (CONT.) –

Nansen

     East Breaks 558/602/646/689/690 (APC 50% WI)

! Anadarko continued its platform rig program at Nansen, with              ! The Conger subsea wells were not damaged by the storms. However,
  successful completion of the A-4 well. The well was brought on line at     damage to the third-party host platform resulted in a complete shut in
  20 MMcf/d gross and the platform rig was demobilized from the              of all incoming production. Anadarko anticipates that repairs will be
  facility prior to hurricane season.                                        completed and the Conger wells will be back on line in 1st Qtr 2009.

! East Breaks 646 #8 and 646 #7ST wells (Shackleton and DP-1)              Red Hawk
  remain on schedule for a mid-year 2009 startup, with installation
  activities scheduled to commence in the 1st Qtr 2009.                         Garden Banks 877 (APC 50% WI)

                                                                           ! Plans to initiate drilling operations on a third well, GB 877 #3, in the
Gunnison
                                                                               st
                                                                             1 Qtr of 2009 remain on track. The prospect targets new fault blocks,
       Garden Banks 667/668/669 (APC 50% WI)                                 with proven field pay in addition to several new horizons. If
                                                                             successful, the well would be immediately completed and brought on
! Anadarko is currently producing oil at approximately 3,000 Bbls/d          line in the second half of 2009.
  gross, and re-injecting natural gas into the reservoir. Repairs to
  downstream facilities are expected to be complete in November, when      Constitution
  the platform should resume pre-storm production rates.
                                                                                Green Canyon 680 (APC 100% WI)
Conger
                                                                           ! While the Constitutional spar is operational, downstream third-party
     Garden Banks 215 (APC 25% WI)                                           infrastructure damage prevented Anadarko from bringing
                                                                             production back on line. Anadarko anticipates that third-party
! Completion operations on the GB 215 #8 ST1 well were completed             downstream repairs will be complete and production will be back on
  and the well was brought on line. Initial production quickly ramped        line, prior to year end.
  up to a rate of approximately 40 MMcf/d and 8,000 BBls/d gross.



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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                                        Gulf of Mexico

              – MAJOR DEVELOPMENT PIPELINE –

Caesar / Tonga                                                                 K2 Complex

     Green Canyon 683/726/727/770 (APC 33.75%)                                     Green Canyon 561/562/605/606/518/563/607 (APC 42% WI)

! The partnership drilled a confirmation well of the West Tonga                ! Sidetracking operations continued on the GC 562 #4 ST2, with the
  discovery. The GC 770 #1 ST 1, located approximately 3,000 feet from           well being drilled through the M-20 Sand. Core and fluid samples
  the GC 726 #1 BP 3 discovery well, encountered high-quality subsalt            were obtained from the M14 sand and Anadarko is preparing to core
  Miocene sands with more than 700 feet of net pay in dipping                    the M20 sand to confirm recent evidence of additional aquifer support
  formations. The discovery is part of a large continuous reservoir              in both sands, which may result in an improved primary recovery
  included in a 20,880-acre unit formed for development with the                 factor. Work continues to determine the optimum development plan
  Caesar discovery, located three miles further to the north.                    for the field.
  Development activities are on track for startup in the first half of 2011.
                                                                               Mission Deep
! Development activities at the Caesar/Tonga complex progressed in the
    rd
                                                                                 Green Canyon 956 (APC 50% WI)
  3 Qtr. Procurement activities on long-lead items, front-end
  engineering and design (FEED) studies continued. Preliminary
                                                                               ! During the 3rd Qtr, Anadarko initiated sidetrack appraisal operations
  testing on the high-pressure riser that will enable development of the
  field as a subsea tieback to the Anadarko Constitution spar is expected        at its Mission Deep discovery. Anadarko is currently evaluating its
  to be complete by year end. In addition, the unitization agreement,            options with respect to this field.
  previously approved by partners, was approved by the MMS.

Blind Faith

     Mississippi Canyon 695/696 (APC 25% WI) – Chevron operated

! Blind Faith commissioning continues, with first production expected
  by year end.



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Second Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                                            Gulf of Mexico

                          – EXPLORATION –

! The Shenandoah prospect (Walker Ridge 8) was spud in early June.
                                                                                            LOUISIANA
                                                                               TEXAS
  The well has a Lower Tertiary (Wilcox) objective and is projected to                                      New Orleans
  reach total depth of 31,000 feet (30,500 feet total vertical depth) in the
   th
  4 Qtr. Anadarko is operator and holds a 30% working interest.
                                                                                                          Blind Faith
  Partners include Conoco-Phillips (40% WI), Cobalt (20% WI) and
                                                                                                Tonga     Caesar
  Marathon (10% WI).

! The Sturgis North prospect (Atwater Valley 138) was spud in early
  February and was plugged and abandoned at the end of the quarter.                                                        Vito
                                                                                                                      Sturgis North
! The Heidelberg exploration well (Green Canyon 859) is scheduled to                                              K2 Complex
  spud in the 4th Qtr. The well is a Miocene target that is on trend with                Shenandoah                       APC acreage
  the Tonga West discovery and has a projected total depth of 28,500 feet                                                 Exploratory Drilling
                                                                                            Heidelberg
  in 5,025-foot water depth. Anadarko holds a 44.25% working interest                                                     Major Developments
                                                                                                  Mission Deep
  and is the operator. Partners include Mariner (12.5% WI), ENI (12.5%
  WI), Exxon (9.375% WI), Cobalt (9.375% WI), Statoil-Hydro (12%
  WI).

! The Vito exploration well (Mississippi Canyon 984) is scheduled to
                 th
  spud in the 4 Qtr. The well is a middle Miocene test and has a
  projected total depth of 29,500 feet in 4,000 feet of water. Anadarko is
  operator with 20% working interest, along with Statoil-Hydro (25%
  WI) and Shell (55% WI). Shell will operate after the exploration well
  has been drilled.




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Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                           International / Frontier
                                                                                                                         Net Volumes*                   Capital*
                                                                                                                  3Q08                   2Q08            3Q08
                                                                                                                                                             $ MM
                                                                                                                MBbls/d                MBbls/d
                                                                                                                                         21                    10
                                                                                                    Alaska        18
                                                                                                                                         56                    19
                                                                                                    Algeria       64
                                                                                                                                         17                    13
                                                                                                     China        14
                                                                                                                                          0                    67
                                                                                                     Other         1
                                                                                                                                         94                   109
                                                                                                    TOTAL         97

                                                                                                              *Data may not add to totals due to rounding.
                        – DEVELOPMENT –

Alaska                                                                     China

                                                                           ! During the 3rd Qtr, oil production averaged 46,000 Bbl/d gross from
! Gross oil production for the Colville River Unit averaged 99,000 Bbl/d
  during the 3rd Qtr, reflecting the planned annual facility maintenance     Bohai Bay.
  shutdown executed in August.
                                                                           ! Development drilling continued, with two wells drilled in the CFD
! Development drilling at the Qannik Satellite continued as four new         11-1 field and four wells drilled in the CFD 12-1S field during the
  wells were drilled and completed during the quarter.                       quarter.

Algeria                                                                    Brazil

! During the 3rd Qtr, oil production from the Hassi Berkine South and      ! Sale of the Peregrino project is progressing toward transaction close,
                                                                             which should be around year-end 2008.
  the Ourhoud Central Processing Facilities was 448,000 Bbl/d gross.

! The BKNE-B field came on production two months ahead of forecast
  and is currently producing at 4,000 Bbl/d. Additional drilling in the
  field is scheduled for 4th Qtr 2008 and into 2009.

! Anadarko and its partners broke ground and began site preparation
  for the El Merk project.



                                                                                                                                                                    14
                                                                                                          NYSE:APC       www.anadarko.com
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                             International / Frontier

                         – EXPLORATION –

Brazil                                                                       China

                                                                             ! During the 3rd Qtr, Anadarko completed acquisition of 1,550
! Anadarko announced a significant pre-salt discovery at the Wahoo
  prospect on block BM-C-30 offshore Brazil in the Campos Basin at the         kilometers (~960 miles) of 2D seismic. Preparations continue for a
  end of the 3rd Qtr. Since that time, the well reached total depth of         planned 4,000-meter (~13,000-foot) exploratory well during late 4th
                                                                               Qtr 2008 or early 1st Qtr 2009.
  approximately 20,000 feet, encountered an additional oil
  accumulation in a deeper zone and confirmed the quality of the
  previously announced reservoir. Extensive logging, fluid and pressure
  sampling has now confirmed more than 200 feet of net pay consisting
  of high-quality, high-gravity crude oil in the upper zone with
  additional hydrocarbon-bearing sands encountered in a deeper zone.
  Anadarko believes the reservoir properties are similar to the giant
  Jubarte field, which is estimated to hold more than a billion barrels of
  recoverable oil. Anadarko and its partners are currently running
  casing to total depth to prepare for drillstem tests in 2009 to further
  evaluate the multiple hydrocarbon-bearing zones, as well as further
  exploration and appraisal drilling on the block in 2009.

! Having control of the Transocean Deepwater Millennium drillship
  enables Anadarko to execute upon its pre-salt program, which
  includes appraisal drilling around the Wahoo well, re-entering the
  Serpa prospect in the Espírito Santo Basin and drilling at least five
  additional deepwater pre-salt tests in the Espírito Santo and Campos
  basins.




                                                                                                                                                     15
                                                                                                          NYSE:APC   www.anadarko.com
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION



                                                                          International / Frontier
                                 APC Acreage

                                 APC Discovery

                                 2008 Drilling

                                 2009 Drilling




                                                                                                         Tertiary Trend
                                                                             Cretaceous Trend
                                                                                                          103 BBOE Discovered
                                                                                2 BBOE Discovered
                                                                                  Under-Explored
                                                                                                        Cretaceous Trend
                                                                                                            8 BBOE Discovered


                   – EXPLORATION (CONT.) –

Ghana                                                                     West Africa

! Plans to sanction the Jubilee Field, with estimated recoverable         ! Anadarko was awarded a 100% working interest in Block 10, a 3,465-
  resources of between 500 million and 1.8 billion BOE, remain on           square-kilometer (~1,340-square-mile) tract offshore Liberia. This
  track. A suitable FPSO has been selected and a Letter of Intent has       block is located in the Liberian basin and is on trend with the
  been signed on the vessel. Project awards on several long-lead items      emerging Upper Cretaceous fan play.
                        rd
  were executed in the 3 Qtr.
                                                                          ! Anadarko signed a contract to acquire 3D seismic on Liberia blocks
                                                                            15, 16 and 17 as part of the exploration program. The current plan is to
! The deepwater drilling rig Blackford Dolphin arrived during the
                                                                            acquire 4,700 square kilometers (~1,800 square miles) of data over the
  second week of October, and the Erik Raude rig is expected to arrive
                                                                            deepwater portion of the blocks to evaluate for potential Cretaceous
  before the end of 2008. These two rigs will continue the exploration,
                                                                            fan prospect development in this emerging basin. Seismic acquisition
  appraisal and development well drilling program in the Deepwater
                                                                            is planned to start in the 4th Qtr. Anadarko operates the blocks with a
  Tano Lisence and West Cape Three Points blocks. In addition, the
  partners have contracted for two additional rigs, the Aban Abraham        65% working interest.
  and Atwood Hunter, which will arrive in early 2009 and will be
  focused on exploratory and appraisal work.

                                                                                                                                                       16
                                                                                                         NYSE:APC   www.anadarko.com

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anadarko petroleum 3Q08 Operations Report

  • 1. ANADARKO PETROLEUM CORPORATION 2008 Operations Report Third Quarter Investor Relations: John Colglazier Vice President john.colglazier@anadarko.com 832.636.2306 Chris Campbell, CFA Manager chris.campbell@anadarko.com 832.636.8434 Danny Hart Manager danny.hart@anadarko.com 832.636.1355 Forward Looking Statement . . . 2 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Drilling Efficiencies . . . . . . . . . . . . . . 4 Rockies . . . . . . . . . . . . . . . . . . . . . . . . . 5-6 Southern. . . . . . . . . . . . . . . . . . . . . . . . 7-8 Gulf of Mexico. . . . . . . . . . . . . . . . . 9-13 International / Frontier . . . . . . 14-16 NYSE:APC www.anadarko.com
  • 2. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Forward Looking Statement Cautionary Note to U.S. Investors: The United States Securities This report contains forward-looking statements within the and Exchange Commission (“SEC”) permits oil and gas meaning of Section 27A of the Securities Act of 1933 and Section companies, in their filings with the SEC, to disclose only proved 21E of the Securities Exchange Act of 1934. Anadarko believes reserves that a company has demonstrated by actual production or that its expectations are based on reasonable assumptions. No conclusive formation tests to be economically and legally assurance, however, can be given that such expectations will prove producible under existing economic and operating conditions. to have been correct. A number of factors could cause actual results Anadarko uses certain terms in this operations report, such as to differ materially from the projections, anticipated results or “estimated recoverable resources,” “recoverable oil” and similar other expectations expressed in this operations report. Anadarko terms that the SEC’s guidelines strictly prohibit Anadarko from cannot guarantee that it will successfully execute on its including in filings with the SEC. U.S. Investors are urged to exploration, drilling and development plans or meet its consider closely the disclosure in Anadarko’s Form 10-K for the production guidance. See “Risk Factors” in the company’s 2007 year ended December 31, 2007, File No. 001-08968, available from Annual Report on Form 10-K and other public filings and press Anadarko at www.anadarko.com or by writing Anadarko at: releases. Anadarko undertakes no obligation to publicly update or Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The revise any forward-looking statements. Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330. 2 NYSE:APC www.anadarko.com
  • 3. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Overview – RIG ACTIVITY – 3Q08 Rig Activity Operated Non-Operated Total 32 Rockies 100 68 27 Southern 39 12 59 LOWER 48 139 80 1 Alaska 2 1 4 Gulf of Mexico 5 1 64 TOTAL U.S. 146 82 3 INTERNATIONAL 5 2 – CAPITAL SPENDING – 67 TOTAL COMPANY 151 84 ! The capital program totaled $1,181 million during the quarter. Full-year capital expenditures are expected to be between $4,650 and $4,750 million (excluding expensed exploration) with – VOLUMES – approximately 20% allocated to exploration. ! Sales volumes for the 3rd Qtr were 51 MMBOE, which was within guidance (51-53 MMBOE), overcoming approximately 4.7 MMBOE of storm-related shut-ins during the period. Capital Spending* 2Q08 3Q08 Net Volumes (MMBOE)* $ MM $ MM 3Q08 338 422 Rockies % Change 272 282 Southern 3Q08 2Q08 3Q07** vs. 2Q08 vs. 3Q07 609 704 LOWER 48 20 20 17 0% 18% Rockies 30 10 Alaska 10 11 11 -6% -3% Southern 289 196 Gulf of Mexico 30 31 27 -2% 10% LOWER 48 928 910 TOTAL U.S. 2 2 2 -12% -16% Alaska 100 99 INTERNATIONAL 12 11 10 6% 17% Gulf of Mexico 133 109 Midstream 43 44 39 0% 10% TOTAL U.S. 71 63 Capitalized Items / Other 7 7 7 8% 5% INTERNATIONAL 1,232 1,181 TOTAL COMPANY 51 50 47 1% 9% TOTAL COMPANY *Data may not add to totals due to rounding. * Data may not add to totals due to rounding. ** 3Q07 volumes exclude divested volumes. 3 NYSE:APC www.anadarko.com
  • 4. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Drilling Efficiencies 3Q08 Drilling Efficiencies* Spud to Rig Spud Rig Release Mobilization to Spud 2% 8% 23% Greater Natural Buttes 10% 17% 48% Wattenberg 20% 21% 24% Carthage 7% 7% 16% Chalk 14% 16% 28% Freestone * Percent change from 2007 results. Note: Company-operated development-drilling programs with at least three rigs on day rate contracts. – DRILLING EFFICIENCIES– Anadarko has greatly enhanced drilling efficiencies across all of the company-operated, major development-drilling programs that utilize day-rate contracts. Increasing efficiencies in these major programs has enabled Anadarko to execute upon the programs without increasing capital during historic inflation in the industry. The chart above shows nearly double-digit improvement in each area in 2008 when compared to 2007 results. 4 NYSE:APC www.anadarko.com
  • 5. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Rockies Gross Rig Activity Completed Wells Net Volumes* Capital* 3Q08 3Q08 3Q08 3Q08 2Q08 Expl. Dev. Oper. Non-Op. $ MM MMcf/d MBbls/d MMcf/d MBbls/d TIGHT GAS Greater Natural Buttes 261 3 240 4 120 7 1 0 96 Wattenberg 165 20 174 19 103 8 1 0 111 Tight Gas EOR CBM Pinedale 54 1 73 1 44 0 28 0 62 Wamsutter 78 7 70 7 35 1 7 0 49 Other 71 3 68 4 17 0 4 0 23 Powder River CBM CBM 378 0 379 0 70 15 27 0 287 EOR 4 12 4 12 33 1 0 0 4 Salt Creek WYOMING 1,011 46 1,008 46 422 32 68 0 632 TOTAL Pinedale *Data may not add to totals due to rounding. Moxa Monell Wamsutter Monell Atlantic Rim Greater Natural Buttes Wattenberg Helper ! Drilling efficiencies continued as 96 wells were completed during the quarter – an increase of 43% from last quarter, while running seven operated rigs compared to eight operated rigs last quarter. UTAH COLORADO Wattenberg ! In the 3rd Qtr, Anadarko drilled 104 wells and performed 311 fracs, – TIGHT GAS DEVELOPMENT – surpassing previous records set in the 2nd Qtr. Anadarko is currently Greater Natural Buttes running eight drilling rigs and is on pace to drill more than 380 wells and perform more than 1,100 fracs this year – a 60% increase over ! Greater Natural Buttes achieved another great quarter – growing 2007. Planned annual third-party plant maintenance resulted in a volumes 9% from the 2nd Qtr and 19% from the 1st Qtr, with a new two-week production curtailment. gross-operated production record of 330 MMcf/d. 5 NYSE:APC www.anadarko.com
  • 6. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Rockies – COALBED METHANE DEVELOPMENT – – GREATER GREEN RIVER BASIN – ! Several sales-volumes records were set in September in the Powder Pinedale River Basin (PRB), where volumes rebounded quickly following two separate maintenance events on the WIC pipeline system in August ! Anadarko continues to participate in an active program with 28 rigs and early September. Gross sales (operated and non-operated) currently running in the Pinedale area. Along with our partners, exceeded 800 MMcf/d and gross operated sales achieved a single-day Anadarko spud 202 wells and completed 169 wells through the end of the 3rd Qtr. high of 430 MMcf/d. ! PRB development activity accelerated throughout the quarter, ! The Bureau of Land Management issued a Record of Decision for the following the end of seasonal wildlife stipulations. Anadarko and its Pinedale Final Environmental Impact Statement (FEIS) on Sept. 12 partner had a combined total of 37 rigs drilling on operated and non- that provides for year-round drilling and completion activity, which operated properties by the end of September. A total of 285 wells were should result in increased future activity. spud during the quarter, an average of over three wells per day. ! Operators shut in approximately 23 MMmcf/d net to Anadarko because of low prices during September, while maintenance was performed on REX. Production has since been restored. – ENHANCED OIL RECOVERY – Wamsutter / Moxa ! Rockies EOR properties surpassed the 10 MMBO cumulative production milestone from CO2 operations and are currently ! In the Wamsutter/Moxa areas, 31 Anadarko-operated wells and 162 non-operated wells have been drilled year to date. producing over 10,000 Bbl/d. 6 NYSE:APC www.anadarko.com
  • 7. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Southern Gross Net Volumes* Rig Activity Completed Wells Capital* 3Q08 3Q08 3Q08 3Q08 2Q08 $ MM Expl. Dev. MMcf/d MBbls/d Oper. Non-Op MMcf/d MBbls/d 90 56 5 3 0 6 Haley 1 84 0 32 3 1 0 0 9 Ozona 1 41 1 56 4 0 0 0 1 Mid-Continent 2 59 1 145 28 3 1 0 4 Bossier 0 156 0 Marcellus 85 67 5 2 0 31 Carthage 5 82 5 41 60 8 2 0 5 Chalk 11 44 12 84 64 5 4 0 13 S. Texas / Other 5 92 5 Hugoton 532 282 27 12 0 69 TOTAL 25 557 24 *Data may not add to totals due to rounding. Haley Bossier Carthage Haynesville Ozona Tight Gas East Chalk Maverick Fractured Reservoirs Other Chalk South Texas ! The Chalk team continued an active drilling program with eight operated rigs running throughout the quarter. Seven wells were All production in the Southern Region has been fully restored. spud and six wells were completed. However, following Hurricane Ike, production was curtailed for a number of days across the region due to damages sustained by third- Bossier rd party infrastructure. The cumulative 3 Qtr volume impact in the region was approximately 0.3 MMBOE. ! At the end of the quarter, the Bear Grass field reached a gross production record of 45 MMcf/d. The team also successfully tested Carthage the first pilot well on 20-acre spacing in Bear Grass, with encouraging results that may lead to a 20-acre-spacing development ! The Carthage asset team continued to execute a successful program, program. The Bossier asset team ran three rigs throughout the completing 22 operated wells. quarter, with seven wells spud and four wells completed. 7 NYSE:APC www.anadarko.com
  • 8. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Southern Haley / Delaware Basin Marcellus ! The Anadarko/Chesapeake partnership had eight rigs running in ! Anadarko's leasehold expanded to approximately 644,000 gross the Delaware Basin during the 3rd Qtr, with seven wells spud and six acres after successful participation in the Pennsylvania State Forest lease sale. Our first horizontal well spud during 3rd Qtr and brings wells completed. the total number of wells spud this year to four. Testing of two vertical wells will continue in the 4th Qtr, and we expect to complete – EXPLORATION – another vertical well and our first horizontal well by year end. Anadarko has completed a number of wells with very encouraging results in its U.S. onshore exploration program, including the Maverick Basin, Haynesville and Marcellus Shale plays. Maverick Basin Current Drilling rd ! Two horizontal wells were drilled during the 3 Qtr for a total of four horizontal wells drilled during 2008 (two Eagleford and two Pearsall tests). Testing continues in the Eagleford where fracture rd stimulations and completions commenced late in the 3 Qtr. The th Pearsall horizontals will be stimulated and tested during the 4 Qtr. Haynesville Marcellus Shale Gas Fairway ! Anadarko has more than 80,000 net acres in the prospective fairway of the Haynesville Shale, the majority held by production underneath our producing fields in the Carthage area in Texas and Elm Grove in Louisiana. The first Anadarko-operated Haynesville rd well was spud, drilled and cored late in the 3 Qtr with completion th occurring early in the 4 Qtr. Three to four exploratory tests in the Haynesville, including one horizontal well, are planned by year end. 8 NYSE:APC www.anadarko.com
  • 9. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Gulf of Mexico Net Volumes 3Q08 2Q08 MMcf/d MBbls/d MMcf/d MBbls/d 68 TOTAL 301 448 51 – PRODUCING PROPERTIES – LOUISIANA TEXAS New Orleans Once again, Anadarko's operated facilities in the deepwater Gulf of Mexico proved their robust design and construction by weathering Baldpate/Conger several named storms with only minor superficial damage. The weather did have a significant effect on Gulf of Mexico production, Power Play Constitution rd with a cumulative 3 Qtr volumes impact of almost 4.5 MMBOE net to Nansen Anadarko. However, within a relatively short time frame, repairs were made. All of Anadarko's operated facilities are operational with approximately 73% of normal Gulf production back on line. The Boomvang Independence remainder is curtailed due to damage to third-party platforms and Hub other third-party infrastructure further downstream. As a result of Marco Polo these lingering repairs, an additional three to five million barrels of Gunnison Red Hawk production will likely be deferred and has been factored into the APC acreage th updated 4 Qtr volume guidance. APC facilities 9 NYSE:APC www.anadarko.com
  • 10. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Gulf of Mexico – PRODUCING PROPERTIES (CONT.) – Independence Hub Power Play ! The Independence Hub platform was shut in for approximately 10 Garden Banks 258/302 (APC 45% WI) days in late July/early August for a check up on the third-party export ! Prior to Hurricane Ike, Power Play was brought on line during the 2nd pipeline. Upon completion, the facility quickly ramped up to full rates rd and is currently producing approximately 900 MMcf/d gross. Qtr and maintained its initial rate of 9,000 BOE/d gross in the 3 Qtr. Due to damages sustained at the Hess-operated Baldpate platform, volumes were subsequently shut-in during the month of October. However, recent repairs to the platform have brought back production at full rate. Independence Hub Marco Polo Green Canyon 608 (APC 100% WI) San Jacinto ! Anadarko is currently reinjecting approximately 10 MMcf/d of Spiderman natural gas into the Marco Polo reservoirs and producing at restricted Mondo NW Atlas NW rates from the Marco Polo and K2 fields as downstream third-party Q infrastructure damage prevented Anadarko from bringing production Atlas Merganser back on line at full rate. Anadarko anticipates that downstream repairs Vortex will be complete and full production will be back on line at year end. Jubilee Cheyenne Boomvang East Breaks 643/642/688 (APC 30% WI) East Breaks 598 (APC 100% WI) East Breaks599 (APC 33% WI) ! The facility experienced no significant hurricane-related damage and is currently producing at pre-storm rates. 10 NYSE:APC www.anadarko.com
  • 11. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Gulf of Mexico – PRODUCING PROPERTIES (CONT.) – Nansen East Breaks 558/602/646/689/690 (APC 50% WI) ! Anadarko continued its platform rig program at Nansen, with ! The Conger subsea wells were not damaged by the storms. However, successful completion of the A-4 well. The well was brought on line at damage to the third-party host platform resulted in a complete shut in 20 MMcf/d gross and the platform rig was demobilized from the of all incoming production. Anadarko anticipates that repairs will be facility prior to hurricane season. completed and the Conger wells will be back on line in 1st Qtr 2009. ! East Breaks 646 #8 and 646 #7ST wells (Shackleton and DP-1) Red Hawk remain on schedule for a mid-year 2009 startup, with installation activities scheduled to commence in the 1st Qtr 2009. Garden Banks 877 (APC 50% WI) ! Plans to initiate drilling operations on a third well, GB 877 #3, in the Gunnison st 1 Qtr of 2009 remain on track. The prospect targets new fault blocks, Garden Banks 667/668/669 (APC 50% WI) with proven field pay in addition to several new horizons. If successful, the well would be immediately completed and brought on ! Anadarko is currently producing oil at approximately 3,000 Bbls/d line in the second half of 2009. gross, and re-injecting natural gas into the reservoir. Repairs to downstream facilities are expected to be complete in November, when Constitution the platform should resume pre-storm production rates. Green Canyon 680 (APC 100% WI) Conger ! While the Constitutional spar is operational, downstream third-party Garden Banks 215 (APC 25% WI) infrastructure damage prevented Anadarko from bringing production back on line. Anadarko anticipates that third-party ! Completion operations on the GB 215 #8 ST1 well were completed downstream repairs will be complete and production will be back on and the well was brought on line. Initial production quickly ramped line, prior to year end. up to a rate of approximately 40 MMcf/d and 8,000 BBls/d gross. 11 NYSE:APC www.anadarko.com
  • 12. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION Gulf of Mexico – MAJOR DEVELOPMENT PIPELINE – Caesar / Tonga K2 Complex Green Canyon 683/726/727/770 (APC 33.75%) Green Canyon 561/562/605/606/518/563/607 (APC 42% WI) ! The partnership drilled a confirmation well of the West Tonga ! Sidetracking operations continued on the GC 562 #4 ST2, with the discovery. The GC 770 #1 ST 1, located approximately 3,000 feet from well being drilled through the M-20 Sand. Core and fluid samples the GC 726 #1 BP 3 discovery well, encountered high-quality subsalt were obtained from the M14 sand and Anadarko is preparing to core Miocene sands with more than 700 feet of net pay in dipping the M20 sand to confirm recent evidence of additional aquifer support formations. The discovery is part of a large continuous reservoir in both sands, which may result in an improved primary recovery included in a 20,880-acre unit formed for development with the factor. Work continues to determine the optimum development plan Caesar discovery, located three miles further to the north. for the field. Development activities are on track for startup in the first half of 2011. Mission Deep ! Development activities at the Caesar/Tonga complex progressed in the rd Green Canyon 956 (APC 50% WI) 3 Qtr. Procurement activities on long-lead items, front-end engineering and design (FEED) studies continued. Preliminary ! During the 3rd Qtr, Anadarko initiated sidetrack appraisal operations testing on the high-pressure riser that will enable development of the field as a subsea tieback to the Anadarko Constitution spar is expected at its Mission Deep discovery. Anadarko is currently evaluating its to be complete by year end. In addition, the unitization agreement, options with respect to this field. previously approved by partners, was approved by the MMS. Blind Faith Mississippi Canyon 695/696 (APC 25% WI) – Chevron operated ! Blind Faith commissioning continues, with first production expected by year end. 12 NYSE:APC www.anadarko.com
  • 13. Second Quarter 2008 ANADARKO PETROLEUM CORPORATION Gulf of Mexico – EXPLORATION – ! The Shenandoah prospect (Walker Ridge 8) was spud in early June. LOUISIANA TEXAS The well has a Lower Tertiary (Wilcox) objective and is projected to New Orleans reach total depth of 31,000 feet (30,500 feet total vertical depth) in the th 4 Qtr. Anadarko is operator and holds a 30% working interest. Blind Faith Partners include Conoco-Phillips (40% WI), Cobalt (20% WI) and Tonga Caesar Marathon (10% WI). ! The Sturgis North prospect (Atwater Valley 138) was spud in early February and was plugged and abandoned at the end of the quarter. Vito Sturgis North ! The Heidelberg exploration well (Green Canyon 859) is scheduled to K2 Complex spud in the 4th Qtr. The well is a Miocene target that is on trend with Shenandoah APC acreage the Tonga West discovery and has a projected total depth of 28,500 feet Exploratory Drilling Heidelberg in 5,025-foot water depth. Anadarko holds a 44.25% working interest Major Developments Mission Deep and is the operator. Partners include Mariner (12.5% WI), ENI (12.5% WI), Exxon (9.375% WI), Cobalt (9.375% WI), Statoil-Hydro (12% WI). ! The Vito exploration well (Mississippi Canyon 984) is scheduled to th spud in the 4 Qtr. The well is a middle Miocene test and has a projected total depth of 29,500 feet in 4,000 feet of water. Anadarko is operator with 20% working interest, along with Statoil-Hydro (25% WI) and Shell (55% WI). Shell will operate after the exploration well has been drilled. 13 NYSE:APC www.anadarko.com
  • 14. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION International / Frontier Net Volumes* Capital* 3Q08 2Q08 3Q08 $ MM MBbls/d MBbls/d 21 10 Alaska 18 56 19 Algeria 64 17 13 China 14 0 67 Other 1 94 109 TOTAL 97 *Data may not add to totals due to rounding. – DEVELOPMENT – Alaska China ! During the 3rd Qtr, oil production averaged 46,000 Bbl/d gross from ! Gross oil production for the Colville River Unit averaged 99,000 Bbl/d during the 3rd Qtr, reflecting the planned annual facility maintenance Bohai Bay. shutdown executed in August. ! Development drilling continued, with two wells drilled in the CFD ! Development drilling at the Qannik Satellite continued as four new 11-1 field and four wells drilled in the CFD 12-1S field during the wells were drilled and completed during the quarter. quarter. Algeria Brazil ! During the 3rd Qtr, oil production from the Hassi Berkine South and ! Sale of the Peregrino project is progressing toward transaction close, which should be around year-end 2008. the Ourhoud Central Processing Facilities was 448,000 Bbl/d gross. ! The BKNE-B field came on production two months ahead of forecast and is currently producing at 4,000 Bbl/d. Additional drilling in the field is scheduled for 4th Qtr 2008 and into 2009. ! Anadarko and its partners broke ground and began site preparation for the El Merk project. 14 NYSE:APC www.anadarko.com
  • 15. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION International / Frontier – EXPLORATION – Brazil China ! During the 3rd Qtr, Anadarko completed acquisition of 1,550 ! Anadarko announced a significant pre-salt discovery at the Wahoo prospect on block BM-C-30 offshore Brazil in the Campos Basin at the kilometers (~960 miles) of 2D seismic. Preparations continue for a end of the 3rd Qtr. Since that time, the well reached total depth of planned 4,000-meter (~13,000-foot) exploratory well during late 4th Qtr 2008 or early 1st Qtr 2009. approximately 20,000 feet, encountered an additional oil accumulation in a deeper zone and confirmed the quality of the previously announced reservoir. Extensive logging, fluid and pressure sampling has now confirmed more than 200 feet of net pay consisting of high-quality, high-gravity crude oil in the upper zone with additional hydrocarbon-bearing sands encountered in a deeper zone. Anadarko believes the reservoir properties are similar to the giant Jubarte field, which is estimated to hold more than a billion barrels of recoverable oil. Anadarko and its partners are currently running casing to total depth to prepare for drillstem tests in 2009 to further evaluate the multiple hydrocarbon-bearing zones, as well as further exploration and appraisal drilling on the block in 2009. ! Having control of the Transocean Deepwater Millennium drillship enables Anadarko to execute upon its pre-salt program, which includes appraisal drilling around the Wahoo well, re-entering the Serpa prospect in the Espírito Santo Basin and drilling at least five additional deepwater pre-salt tests in the Espírito Santo and Campos basins. 15 NYSE:APC www.anadarko.com
  • 16. Third Quarter 2008 ANADARKO PETROLEUM CORPORATION International / Frontier APC Acreage APC Discovery 2008 Drilling 2009 Drilling Tertiary Trend Cretaceous Trend 103 BBOE Discovered 2 BBOE Discovered Under-Explored Cretaceous Trend 8 BBOE Discovered – EXPLORATION (CONT.) – Ghana West Africa ! Plans to sanction the Jubilee Field, with estimated recoverable ! Anadarko was awarded a 100% working interest in Block 10, a 3,465- resources of between 500 million and 1.8 billion BOE, remain on square-kilometer (~1,340-square-mile) tract offshore Liberia. This track. A suitable FPSO has been selected and a Letter of Intent has block is located in the Liberian basin and is on trend with the been signed on the vessel. Project awards on several long-lead items emerging Upper Cretaceous fan play. rd were executed in the 3 Qtr. ! Anadarko signed a contract to acquire 3D seismic on Liberia blocks 15, 16 and 17 as part of the exploration program. The current plan is to ! The deepwater drilling rig Blackford Dolphin arrived during the acquire 4,700 square kilometers (~1,800 square miles) of data over the second week of October, and the Erik Raude rig is expected to arrive deepwater portion of the blocks to evaluate for potential Cretaceous before the end of 2008. These two rigs will continue the exploration, fan prospect development in this emerging basin. Seismic acquisition appraisal and development well drilling program in the Deepwater is planned to start in the 4th Qtr. Anadarko operates the blocks with a Tano Lisence and West Cape Three Points blocks. In addition, the partners have contracted for two additional rigs, the Aban Abraham 65% working interest. and Atwood Hunter, which will arrive in early 2009 and will be focused on exploratory and appraisal work. 16 NYSE:APC www.anadarko.com