Project expected to add net production of 20,000 barrels of oil per day in
2009
HOUSTON, May 7 /PRNewswire-FirstCall/ -- Apache Corporation (NYSE,
Nasdaq: APA) today announced that it has signed a contract for a floating
production, storage and offloading (FPSO) vessel that will be used in the
company's $500 million Van Gogh development in Western Australia's Exmouth
Basin. When it comes on line in 2009, the project is expected to add 20,000
barrels per day to Apache's net worldwide oil output.
Apache, on behalf of its joint venture with Inpex Corporation, signed
the contract with a subsidiary of Prosafe SE, of Stavanger, Norway, for use
of the tanker MT Kudam, which will be converted for FPSO service. Apache
and Inpex will pay $40 million plus operating expenses per year for a
seven-year term with options for an eight-year extension or to acquire the
vessel. Apache owns 52.5 percent of the development; Tokyo-based Inpex owns
47.5 percent. Apache's net share of the drilling and subsea development
project will be approximately $260 million.
The moored FPSO will be linked to two subsea drill centers with 10
production wells, two water injection wells, and one gas injection well.
The MT Kudam will have processing capacity of 63,000 barrels of oil per day
and storage capacity of 620,000 barrels of oil. The oil will be marketed in
Asia. Development drilling at Van Gogh is expected to begin by June.
"Apache has a strong growth profile in Australia, with the Van Gogh and
Pyrenees oil developments in the Exmouth Basin, the Reindeer gas discovery
and, most recently, the Julimar-1 gas discovery," said G. Steven Farris,
Apache's president and chief executive officer. "Drilling is under way on
Apache's five-well exploratory program slated for the Exmouth Basin in
2007. In Australia and our other core growth areas -- Canada and Egypt --
we have an arsenal of maturing exploration prospects that will be drilled
this year."
The Pyrenees development, operated by BHP-Billiton, is expected to
receive a formal go-ahead in the near future. It is also expected to add
20,000 barrels of oil per day to Apache's net production during 2009. The
Van Gogh and Pyrenees developments will provide production volumes
equivalent to approximately 15 percent of Apache's current net worldwide
oil production.
Apache Corporation is a large oil and gas independent with operation in
the United States, Canada, the United Kingdom North Sea, Egypt, Australia
and Argentina.
This news release contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995 including,
without limitation, expectations, beliefs, plans and objectives regarding
production and exploration activities. Any matters that are not historical
facts are forward-looking and, accordingly, involve estimates, assumptions
and uncertainties. There is no assurance that Apache's expectations will be
realized, and actual results may differ materially from those expressed in
the forward-looking statements.
APA-AU
SOURCE Apache Corporation
 back to top
Related links:
http://www.apachecorp.com
CONTACT:
Media, Tony Lentini, +1-713-296-6227, and
Bill Mintz, +1-713-296-7276; Investors, Robert Dye,
+1-713-296-6662, and David Higgins, +1-713-296-6690, all of
Apache Corporation
|
