By OGJ editors
HOUSTON, Apr. 20 -- Apache Corp. plans to pay $1.3 billion to acquire BP PLC's interests in 18 oil and gas fields in shallow waters of the Gulf of Mexico. BP operates 11 of the fields.
The transaction covers 92 blocks with estimated proved reserves of 27 million bbl of liquid hydrocarbons and 185 bcf of natural gas. Apache also has identified 50 drilling prospects on the properties and an additional 4 million bbl of liquids and 26 bcf of gas in probable and possible reserves.
Some of the fields are subject to preferential purchase rights of other interest owners. The transaction, subject to government approvals, is expected to close by the end of the second quarter.
In early 2003, BP sold Apache its 96.14% stake in the UK North Sea's Forties oil field as well as some shallow-water Gulf of Mexico properties for $1.3 billion (OGJ, Jan. 20, 2003, p. 32). The new sale covers BP's remaining properties in the gulf's shallow waters.
Upon completion of the latest transaction, the gulf shelf will account for 21% of Apache's worldwide production and 15% of its reserves.
Apache expects the acquired assets to produce on average 7,100 b/d of oil, 1,500 b/d of gas liquids, and 108 MMcfd of gas from the Apr. 1 transaction date through yearend.
Production is expected to rise in 2007 as fields damaged by last year's hurricanes resume flow.
Apache also said its directors approved the repurchase of as many as 15 million shares of the company's common stock, worth about $1 billion at recent prices.
