Anadarko expects Permian service costs to jump in 2018

NEW ORLEANS, March 27 (Reuters) - U.S. shale oil producerAnadarko Petroleum Corp expects double-digit increasesin service costs this year for its operations in the PermianBasin, the largest U.S. oilfield, its chief executive said onTuesday.

The company, which operates in the Delaware portion of thePermian, projects that service costs will rise 10 to 15 percentthere for the year, CEO Al Walker said at the Scotia Howard Weilenergy conference in New Orleans.

"We're just going to see some natural creep in service coststhat will just have to work its way into the system," Walkersaid. "If oil prices rise higher, that will increase thepressure on prices."

Anadarko rival EOG Resources Inc said on Tuesday itexpects Permian service costs to actually dip this year, thoughEOG sources many fracking supplies itself, helping to defraycosts.(Reporting by Ernest ScheyderEditing by Chizu Nomiyama)