EXHIBIT 13

PORTIONS OF THE ANADARKO PETROLEUM CORPORATION
1999 ANNUAL REPORT OF STOCKHOLDERS

Summary Financial Data*

% Change
Millions, except per share amounts 1999 1999-1998 1998 1997 1996 1995
- ---------------------------------- ------------ --------- ------------ ------------ ------------ ------------

Revenues $ 701.1 25 $ 560.3 $ 675.1 $ 570.1 $ 435.2
Operating Income (Loss) 178.9 N/M (7.4) 205.3 196.8 65.6
Net Income (Loss) 42.6 N/M (42.2) 107.3 100.7 21.0
Net Income (Loss) Available to
Common Stockholders 31.7 N/M (49.3) 107.3 100.7 21.0

Net Cash provided by Operating
Activities $ 317.7 33 $ 239.6 $ 362.0 $ 314.5 $ 248.3

Per Common Share:
Net Income (Loss) - Basic $ 0.25 N/M $ (0.41) $ 0.90 $ 0.85 $ 0.18
Net Income (Loss) - Diluted $ 0.25 N/M $ (0.41) $ 0.89 $ 0.85 $ 0.18
Dividends $ 0.20 7 $ 0.1875 $ 0.15 $ 0.15 $ 0.15
Average Shares Outstanding 125.2 4 120.1 119.4 118.5 117.9
Capital Expenditures $ 680 (26) $ 917 $ 686 $ 427 $ 331
------------ ---- ------------ ------------ ------------ ------------
Long-term Debt $ 1,443 1 $ 1,425 $ 956 $ 731 $ 674
Stockholders' Equity 1,535 22 1,259 1,117 1,014 910
Total Assets $ 4,098 13 $ 3,633 $ 2,992 $ 2,584 $ 2,267
------------ ---- ------------ ------------ ------------ ------------
Annual Production:
Gas (Bcf) 169.8 (4) 176.7 178.7 164.9 171.7
Oil and Condensate (MBbls) 14,583 31 11,126 9,083 6,702 7,435
NGLs (MBbls) 6,568 (1) 6,640 5,467 3,514 3,580
Total Energy Equivalent Barrels
(MMEEBs) 49.5 5 47.2 44.3 37.7 39.6
------------ ---- ------------ ------------ ------------ ------------
Average Daily Production:
Gas (MMcf/day) 465 (4) 484 490 450 471
Oil and Condensate (MBbls/day) 40 33 30 25 18 20
NGLs (MBbls/day) 18 -- 18 15 10 10
Total Energy Equivalent Barrels
(MEEBs/day) 135 5 129 121 103 108
------------ ---- ------------ ------------ ------------ ------------
Oil Reserves (MMBbls) 573.2 16 494.0 419.7 297.8 219.2
Gas Reserves (Tcf) 2.51 (5) 2.65 1.73 1.82 1.84
Total Reserves (MMEEBs) 991.0 6 935.1 708.0 601.3 526.3
------------ ---- ------------ ------------ ------------ ------------
Worldwide Finding Cost ($/EEB)** $ 4.87 56 $ 3.13 $ 4.28 $ 2.76 $ 2.74
Worldwide Reserve Replacement
(% of Production) 213% (63) 581% 341% 299% 226%
------------ ---- ------------ ------------ ------------ ------------
Number of Employees 1,431 (3) 1,476 1,386 1,229 1,076
------------ ---- ------------ ------------ ------------ ------------

* Consolidated for Anadarko Petroleum Corporation and its principal
subsidiaries, including Anadarko Algeria Corporation, Anadarko Energy
Services Company and Anadarko Gathering Company. See Management's
Discussion and Analysis.

** Worldwide finding costs are calculated by dividing worldwide costs incurred
by the worldwide reserve additions, excluding sales in place.

ALGERIA

Algeria oil production continued to increase, reaching 6.2 million barrels
- - or 13% - of Anadarko's total production in 1999.

Production from Algeria is expected to grow dramatically over the next five
years, providing a significant portion of the Company's net income and
generating substantial returns for Anadarko shareholders.

In September 1999, a contract was signed and work began on the Stage II
production facilities at the Hassi Berkine South (HBNS) Field. These facilities
should boost production capacity at that field in 2001.

In December 1999, a contract was signed and work began on production
facilities for the Hassi Berkine (HBN) Field. With completion expected in 2001,
this facility should further increase production from Algeria. In order to
complete the Central Production Facility on Block 404, additional production
facilities may be built for four satellite fields surrounding the HBNS and HBN
Fields by 2002.

Development work at the Ourhoud (ORD) Field on the south end of Block 404
is anticipated to accelerate in 2000. Ourhoud is Anadarko's biggest discovery in
Algeria and the country's second largest oil field. Development drilling has
been underway since 1998. In late 1999, Anadarko and its partners received bids
for construction of the ORD field production facilities; these bids are being
evaluated. The signing of a contract is expected in 2000, with first production
planned for 2002.

Anadarko also has several fields farther south on Block 208. Initial
development plans for these more recent discoveries were submitted in 1998 and
are being finalized. Design work has begun, and these production facilities are
expected to be built over the next few years, with initial production expected
in the 2003 - 2005 time frame.

In 1999, Anadarko sold its non-operating interests in Blocks 401a and 402a
in Algeria. The Company received $84.7 million from the sale, which was applied
to development of the large fields on Blocks 404 and 208.

Anadarko's Algeria project is the largest international undertaking in the
Company's history. Its importance to Anadarko, which is already substantial,
should increase over the years as the expanded production facilities planned or
currently under construction make additional high-quality, Saharan Blend crude
oil available to world markets.

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ALASKA

By the end of 1999, Anadarko had firmly established Alaska as a core area
for exploration and development activity that should last for many years.

Anadarko continues to consider Alaska to be one of the most promising areas
in the world for the discovery of major oil and gas fields.

Anadarko announced a large oil discovery at the Alpine Field on the North
Slope in 1996. Since that time, development work has progressed rapidly and is
more than 80% complete. In 1999, installation and construction continued on
production pads, roads, an airstrip and production facilities. Drilling began on
the 120 development wells planned for this large field, which has published
gross reserve estimates of 429 MMBbls.

Production from Alpine should begin in the third quarter of 2000 at a gross
rate of 40,000 BOPD and is expected to reach 80,000 BOPD in 2001. Anadarko owns
a 22% working interest in the field.

Alpine provides attractive economic returns for a number of reasons. Chief
among these reasons are the higher quality of the crude oil as compared to other
North Slope fields and the relatively low-cost production made possible by
technological advances. Both of these factors help offset the higher
transportation expenses associated with the North Slope.

Anadarko also enjoyed success at NPRA Lease Sale 991. The Company now holds
working interests in 99 blocks totaling about 770,000 gross acres. Anadarko also
holds rights to 670,000 gross acres in state and federal lands, and an option to
lease 3.1 million acres in the Foothills area controlled by the Arctic Slope
Regional Corporation.

At Cook Inlet, where Anadarko holds interests in 176,000 gross acres, there
was a successful production test of the Lone Creek #1 gas discovery well in the
Moquawkie prospect. The Company has a 50% working interest and is evaluating the
development of this field.

Exploration

In July, Anadarko and its partner announced the discovery of Fiord, a
satellite field to Alpine with potential gross reserves of more than 50 MMBbls.
The Fiord discovery helps demonstrate that the North Slope has one of the key
characteristics Anadarko looks for in any play, repeatability - or running room
- - the potential for more than one significant discovery.

In addition, permits were received in late January 2000 for several
exploratory wells on the North Slope, where drilling has just recently begun.

Anadarko firmly believes that Alaska will continue to yield significant
success in both exploration and development.

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BOSSIER

The Bossier Play, Anadarko's newest core area, is a prime example of an
asset with immediate results and lasting value.

The people, capital and expertise Anadarko has committed to the Bossier
Play over the past three years have yielded remarkable production growth and
high returns. At the beginning of 1996, gas production from the play was zero.
By the end of 1999, net production had risen to an average of 110 MMcf/d.
Production is still growing rapidly. Anadarko's net gas production in 2000 is
expected to average 150 MMcf/d, exceeding its share of production from the
Hugoton Field in southwestern Kansas, long one of the Company's mainstays.

The play has yielded only one dry hole out of the more than 130 wells
completed or spudded as of year-end 1999. Anadarko has an average working
interest of more than 90% in the wells completed so far, many of which also have
gas pays in zones above the Bossier interval.

Anadarko has leveraged its activity and experience in the play to
significantly decrease well costs. The Company has cut the time from start of
drilling to first production to about 45 days. Finding and development costs at
year-end 1999 were less than 60 cents per Mcf. Bossier wells typically exhibit
high initial production rates that decline sharply in the first year. Production
rates then generally level out and should produce at stable rates for 20 years
or more. Low finding costs and high initial production rates give the Bossier
Play some of the highest net margins and returns of any project in the Company's
portfolio.

The economics are further enhanced by the Dew Gathering System, with more
than 60 miles of gathering lines connected to three different transmission
pipelines. This allows the Company to shift gas between different buyers to
capture the most value. Anadarko continues to expand capacity on the gathering
system to accommodate its growing production from the Bossier Play.

Exploration

As prices and cash flow rose, Anadarko aggressively expanded the Bossier
Play in 1999. Highlights included the discovery of a new field, Dowdy Ranch,
just northeast of the Dew and Mimms Creek Fields, thus demonstrating the
repeatability - or running room - of the play.

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GULF OF MEXICO

With proven results and exceptional potential, the Gulf of Mexico continues
to command Anadarko's attention and commitment.

Anadarko's Gulf of Mexico production in 1999 was 10 MMEEBs, about 20% of
the Company's total production for the year. Production is projected to stay
about the same in 2000. However, production from the Gulf of Mexico should
increase significantly in 2001 - by 50% compared to 2000 - as several
development projects come completely on-line.

Work progressed steadily in 1999 on construction of the production
platforms for Anadarko's 1998 discoveries, Hickory and Tanzanite. These
platforms are scheduled for installation in late summer 2000. Anadarko owns a
100% working interest in Tanzanite and 50% in Hickory, where development
drilling has begun.

Anadarko continued development activity in existing fields in the Gulf of
Mexico in 1999. A replacement well drilled at Agate was connected for production
through the Mahogany platform. The Company drilled a number of key development
wells at Mahogany, Galveston 333 and Matagorda Island 622-623. In addition,
wells were successfully recompleted at a number of platforms, including
Matagorda Island 587, Galveston 333, Vermilion 78, East Cameron 157 and
Matagorda Island 622-623.

Exploration

Taking advantage of lower day rates for drilling rigs, Anadarko drilled
three sub-salt wildcat wells in the Gulf of Mexico in 1999, all of which were
unsuccessful below the salt. One of these wells found a gas accumulation above
the salt at the Garnet prospect offshore Louisiana. This well is expected to be
connected via a sub-sea completion in April 2000 to the East Cameron 359
platform located nearby and operated by Anadarko. The Company has a 100% working
interest in Garnet.

Anadarko doubled its exploration acreage in the sub-salt fairway through an
agreement with Texaco. Under the agreement, Anadarko acquired rights to future
exploration on 82 blocks covering 400,000 gross acres. Seismic data processing
on 40 of the blocks has begun.

The Company continued to gather and evaluate data on several high-potential
prospects it owns in the deepwater.

Anadarko has established itself as a significant player in the Gulf of
Mexico, an area that, with the discovery of large fields, can yield impressive
returns and lasting value.

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OTHER CORE DEVELOPMENT

Three onshore areas have generated most of Anadarko's historical production
in the United States. They remain rich in promise and value.

These core assets are the Permian Basin in west Texas and southeastern New
Mexico; the Hugoton Embayment beneath southwestern Kansas and the Oklahoma and
Texas Panhandles; and central Oklahoma's Golden Trend, a large and prolific
natural gas and oil field.

Anadarko has enhanced recovery projects and select exploration in each
area. These assets continue to generate revenue and attractive economic returns.

Permian Basin

The Permian Basin is the heart of Anadarko's domestic oil production. The
Company has more than 2,700 active wells there, most characterized by long-lived
production. Finding costs are low. Projects generally yield excellent rates of
return.

Many fields in the Permian Basin are mature, but far from depleted.
Anadarko has targeted several of them for additional development. One exciting
area is the Snyder Field near Coahoma, Texas, where the Company recently
acquired more than 2,000 acres. An initial infill drilling program has resulted
in some wells producing 60-100 BOPD in an area where the average existing well
produces less than 10 BOPD. Additional drilling and further installation of a
waterflood program are planned for 2000.

Anadarko drilled 67 wells in the Permian Basin in 1999 and performed 71
well workovers and recompletions. In New Mexico, a drilling program was begun
that yielded encouraging results, with more wells planned in 2000. Anadarko
started a waterflood program at the Ketchum Mountain East Clearfork Unit in
Irion County, Texas, which is expected to boost production from existing wells.

Hugoton Embayment

Hydrocarbons have been produced from the Hugoton Embayment for more than 75
years. Anadarko got its start in this region more than four decades ago and it
remains the Company's largest concentration of assets. Anadarko has access to
more than a million lease acres and operates 2,750 wells.

Anadarko is a dominant player in the Hugoton area and sees many profitable
opportunities there. The area has multiple pay zones which the Company believes
can be exploited through relatively inexpensive workovers or recompletions of
existing wells. This helps to offset natural production declines and extends the
life of the area's fields.

The Company recompleted or worked over 80 wells in the Hugoton in 1999,
drilled 42 wells and acquired 3-D seismic data to support future drilling.

Golden Trend

Since 1980, when Anadarko discovered the Golden Trend, more than a Tcf of
natural gas have been discovered by the Company and others. It is one of
Anadarko's largest onshore fields, characterized by long-lived production.

In late 1999, Anadarko continued to expand the area under carbon dioxide
flood to increase oil recovery. The Company also acquired additional 3-D seismic
data to support future drilling.

The Golden Trend has benefited Anadarko in another way as well. Almost 20
years of success in drilling, producing and gathering gas from these tight sands
have given Anadarko a base of experience to apply in the Bossier Play which is
proving to be so productive.

FUTURE EXPLORATION

Near-term production growth and financial performance will be driven by the
development of recent discoveries. Long-term, Anadarko remains committed to
grassroots exploration as the best strategy to create lasting value for
shareholders.

Anadarko's exploration philosophy is to develop a portfolio of projects
that will ensure reserve growth at low finding costs and future production
growth at attractive margins. This, in turn, helps ensure growth in asset value
and cash flow. The Company balances its portfolio by combining "bread and
butter" projects with projects that have higher risk and higher reward. To
develop this balanced portfolio, Anadarko emphasizes economic return on
investment, capitalizes on its experience and technological competencies, and
focuses its resources on a select set of projects.

In 2000, international exploration will be conducted primarily in Tunisia
and the North Atlantic Margin. Initial evaluation also is underway in several
other international areas. In the United States, Anadarko will concentrate its
exploration programs in Alaska and the Gulf of Mexico.

Tunisia

Anadarko's knowledge and experience gained in the Berkine/Ghadames Basin of
Algeria are being extended across the border into Tunisia, where the Company
holds two separate concession areas. On the Anaguid Block, the Company plans to
acquire and reprocess seismic data in preparation for a drilling program
beginning in late 2000 or early 2001. On the nearby Jenein Nord Block, Anadarko
is evaluating multiple exploration prospects and plans to begin exploration
drilling in 2000.

North Atlantic Margin

In 1999, Anadarko participated in a wildcat well drilled in Tranche 61,
about 60 miles northwest of the Shetland Islands. In 2000, Anadarko plans to
participate in a second exploratory well on Tranche 61. The Company also has an
interest in the adjacent Tranche 63 as well as in three others - two offshore
Ireland and one in the Rockall Trough about 90 miles west of Ireland. These five
tranches encompass 1.2 million gross acres, equivalent in size to more than 240
Gulf of Mexico lease blocks.

Alaska

In March 2000, Anadarko began drilling a well on the Clover prospect in the
NPRA and has plans for two other wildcat wells. The Company also is
participating in 3-D seismic acquisition programs in the NPRA and Central Arctic
and is continuing to evaluate the potential of the Foothills of the North Slope.

Gulf of Mexico

Anadarko expects to move farther offshore in 2000 with the drilling of a
deepwater well on the Marco Polo prospect on Green Canyon Block 608. In
addition, Anadarko anticipates building on its success in the sub-salt fairway
with exploration wells in several prospects. The Company will continue to
process seismic data and evaluate prospects for drilling in both the shallow and
deepwater Gulf of Mexico.

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STOCKHOLDERS' INFORMATION

The common stock of Anadarko Petroleum Corporation is traded on the New
York Stock Exchange. Average daily trading volume was 672,000 shares in 1999,
627,000 shares in 1998 and 531,000 shares in 1997.

The ticker symbol for Anadarko is APC and daily stock reports published in
local newspapers carry trading summaries for the Company under the headings
Anadrk or AnadrkPete.

The following shows information regarding the closing market price of and
dividends paid on the Company's common stock by quarter for 1999 and 1998.

First Second Third Fourth
Quarter Quarter Quarter Quarter
---------- ---------- ---------- ----------

1999
Market Price
High $ 39.88 $ 40.50 $ 38.19 $ 35.44
Low $ 26.56 $ 35.69 $ 29.00 $ 27.19
Dividends $ 0.05 $ 0.05 $ 0.05 $ 0.05

1998*
Market Price
High $ 34.63 $ 37.91 $ 43.19 $ 40.94
Low $ 26.44 $ 30.31 $ 28.75 $ 25.69
Dividends $ 0.0375 $ 0.05 $ 0.05 $ 0.05

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* In April 1998, the Board of Directors approved a two-for-one stock split. The
stock split was effected by way of a stock dividend. The distribution date was
July 1, 1998 to stockholders of record on June 15, 1998. All amounts shown above
have been restated to reflect the stock split.