Exhibit 99.2

           Anadarko to Reserve for New Algeria Tax Expense

    HOUSTON--(BUSINESS WIRE)--Feb. 5, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced it will record an approximate
$100 million charge to fourth quarter 2006 earnings following
promulgation of regulations in December related to the implementation
of Algeria's new "exceptional profits" tax. This tax applies when the
monthly average price for Brent Crude exceeds $30 per barrel.

    "Our Algerian assets are operated under a production sharing
contract containing a stabilization clause that protects our existing
investment and related asset value. Although we are recording the
estimated impact of the tax with this charge in the fourth quarter, we
expect to ultimately receive relief through the stabilization
provision once its applicability is recognized in a settlement
agreement or in international arbitration," Anadarko Chairman,
President and CEO Jim Hackett said.

    The fourth-quarter charge represents an estimate of Anadarko's
liability for the exceptional profits tax from the law's Aug. 1, 2006
effective date through year-end 2006, based on the assumption that the
tax applies only to production value in excess of $30 per barrel.
Beginning in 2007, assuming an average oil price of $60 per barrel and
application of the exceptional profits tax to production value in
excess of $30 per barrel, Anadarko's estimated annual expense for the
exceptional profits tax would be $225 million. If the exceptional
profits tax is applied to the full value of production rather than to
the value in excess of $30 per barrel, the estimated annual expense
would double under the $60 per barrel price assumption. There is also
uncertainty as to how the collection and relief of the tax will
ultimately be resolved. Sonatrach, the Algerian state-owned oil
company, has indicated it will begin collecting the current and past
tax in March 2007 by retaining a portion of the barrels to which
Anadarko is entitled.

    With regard to future investments, Anadarko currently has
approximately 110 million barrels of proved undeveloped reserves in
Algeria. There is no reserve revision associated with the
implementation of the tax under the assumption that the tax applies
only to production value in excess of $30 per barrel. As the company's
dispute process progresses, Anadarko will continue to review the
impact that the tax change may have on future development plans and
associated reserve bookings, if any.

    "We believe that the sanctity of our contract's stabilization
provision will be upheld and thus will preserve the value of our
Algerian asset base," Hackett said. "Although we expect a favorable
outcome to this matter, ultimate resolution may be more than a year
away."

    Anadarko Petroleum Corporation's mission is to deliver a
competitive and sustainable rate of return to shareholders by
exploring for, acquiring and developing oil and natural gas resources
vital to the world's health and welfare. As of year-end 2005, the
company had 2.4 billion barrels-equivalent of proved reserves, making
it one of the world's largest independent exploration and production
companies. In August 2006, Anadarko acquired Kerr-McGee Corporation
and Western Gas Resources, Inc. in separate transactions.

    This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this news release. Anadarko cannot guarantee
that it will successfully integrate the recently acquired businesses
or complete its pending or proposed asset sales, nor can it guarantee
the outcome from the proceedings related to the Algerian exceptional
profits tax. See "Risk Factors" in the company's 2005 Annual Report on
Form 10-K and other public filings, press releases and discussions
with company management. Anadarko undertakes no obligation to publicly
update or revise any forward-looking statements.

    CONTACT: Anadarko Petroleum Corporation
             Teresa Wong, 832-636-1203 (Media)
             teresa.wong@anadarko.com
             Charles Howson, +44 1895209580 (Media)
             charles.howson@anadarko.com
             John Colglazier, 832-636-2306 (Investors)
             john.colglazier@anadarko.com
             Stewart Lawrence, 832-636-3326 (Investors)
             stewart.lawrence@anadarko.com