PERTH, Australia, June 23 /PRNewswire-FirstCall/ -- Apache Northwest
Pty Ltd, a subsidiary of Apache Corporation (NYSE, Nasdaq: APA), said today
it has completed an initial assessment of damage at its Varanus Island
processing hub and a timetable for restoring production.
"Our estimated timetable is to restore gross production at a rate of
180 million cubic feet (MMcf) of natural gas per day (200 Tj per day)
through the East Spar Joint Venture processing facilities by Aug. 15,
ramping up to 315 MMcf (350 Tj) per day in December as the Harriet Joint
Venture facilities are returned to production," said Tim Wall, managing
director of Apache Northwest Pty Ltd.
"We are making every effort to meet or beat this timetable," Wall said.
"We have 146 people on Varanus Island conducting clean-up and
reconstruction efforts. Since the incident occurred on June 3, Apache
engineering teams have been canvassing the world for replacement equipment
in an effort to minimize repair time."
The East Spar J.V. facilities are located the greatest distance from
the rupture and sustained less damage. Export pipelines and associated
valves, two compressors, instrumentation and control facilities are being
repaired to meet the timetable of restoring production by mid-August.
The Harriet J. V. processing facilities are located adjacent to the
rupture and will require significant repairs to meet the goal of restoring
production in December. Damage occurred at three sales gas compressors, the
hot oil system, control system and flare stacks. In addition, evaluation of
damage to several processing vessels is continuing.
"Apache understands the hardship that this disruption has caused, not
just for our customers but also for many others in Western Australia," said
G. Steven Farris, Apache Corporation president and chief executive officer.
"We are committed to restoring production as soon as possible.
"Apache has been a major supplier of natural gas to Western Australia
for the last 15 years," Farris said. "We have four new oil and gas projects
under development that will contribute to the expanding Western Australia
economy. Our Reindeer project, which includes construction of a 68-mile
(110 km) offshore pipeline and an onshore gas processing facility at Devil
Creek, will provide an entirely new source of gas for the domestic market
in mid-2010."
Prior to the June 3 incident, total production through Varanus Island,
which is located approximately 60 miles (100 km) from Karratha on
Australia's Northwest Shelf, was 315 MMcf (350 Tj) per day. Apache has a
68.5-percent interest in the Harriet J.V. and a 55-percent interest in the
East Spar J.V.
Apache continues to assist the Department of Industry and Resources
(DoIR) and the National Offshore Petroleum Safety Authority (NOPSA) with
their inquiries.
Apache Corporation is a large independent oil and gas exploration and
production company with operations in the United States, Canada, the United
Kingdom North Sea, Egypt, Australia and Argentina.
This news release contains certain "forward-looking statements" within
the meaning of the "safe harbor" provisions of 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, risks and uncertainties,
including, without limitation, risks, uncertainties and other factors
discussed in our 2007 Form 10-K and on our Web site,
http://www.apachecorp.com. 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. We assume no duty to update
these statements as of any future date.
APA-AU
SOURCE Apache Corporation
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CONTACT:
media, U.S.: Bill Mintz of Apache,
+1-713-296-7276, mobile, +1-713-392-3406; or Australia: Caroline
de Mori, Director of Purple Communications, +61 8 9485 1254, fax,
+61 8 6263 0455, mobile, +61 418 919 064, for Apache; or
investors, Robert Dye, +1-713-296-6662, or David Higgins,
+1-713-296-6690, both of Apache
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