Anadarko Petroleum Rig Insurance Coverage About $160M

May 6, 2010

Anadarko Petroleum Corp., headquartered in The Woodlands, Texas, says insurance will cover more than $160 million of costs related to the Gulf of Mexico rig disaster.

The company owns a 25 percent non-operating interest in the field where a rig leased by a unit of BP PLC exploded and sank two weeks ago. Oil continues leaking from the well and the resulting spill is threading wildlife and businesses along the Gulf coastline.

In an SEC filing Anadarko says net insurance coverage will likely total about $177.5 million, less deductibles of $15 million.

“This insurance is designed to cover costs associated with stopping the hydrocarbon release, drilling relief wells and other associated costs,” Chairman and CEO Jim Hackett told analysts.