773910--3/3/2006--ANADARKO_PETROLEUM

related topics

{gas, price, oil}

{operation, international, foreign}

{operation, natural, condition}

{loss, insurance, financial}

{cost, regulation, environmental}

{cost, contract, operation}

Commodity pricing and demand may limit our productivity and profitability. Under the full cost method of accounting, a noncash charge to earnings related to the carrying value of our oil and gas properties on a country-by-country basis may occur. We are subject to complex laws and regulations relating to environmental protection that can adversely affect the cost, manner and feasibility of doing business. We may not be insured against all of the operating risks to which our business is exposed. Material differences between the estimated and actual timing of critical events may affect the completion of and commencement of production from development projects. Our domestic operations are subject to governmental risks that may impact our operations. We operate in other countries and are subject to political, economic and other uncertainties. The oil and gas exploration and production industry is very competitive, and some of our exploration and production competitors have greater financial and other resources than we do. Our commodity hedging and trading activities may prevent us from benefiting fully from price increases and may expose us to other risks. Our drilling activities may not be productive. We are vulnerable to risks associated with operating in the Gulf of Mexico that could negatively impact our operations and financial results. Our proved reserves are estimates. Any material inaccuracies in our reserve estimates or assumptions underlying our reserve estimates could cause the quantities and net present value of our reserves to be overstated or understated. Failure to replace reserves may negatively affect our business. Failure to find a supply source for our Bear Head LNG project could result in losses associated with sunk costs as well as reimbursement fees for certain predevelopment costs associated with termination of the related long-term gas transportation agreements. We have limited control over the activities on properties we do not operate.

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773910--3/3/2006--ANADARKO_PETROLEUM_CORP