HOUSTON –Apache (NYSE:APA) has agreed to sell its Gulf of Mexico shelf operations and properties to Fieldwood Energy for $3.75 billion. Fieldwood is an affiliate of Riverstone Holdings.
Apache will retain 50% ownership interest in all exploration blocks and in horizon below production in existing blocks.
The effective date is July 1, 2013, and the project closing date is Sept. 30, 2013, subject to regulatory and closing conditions being met.
Apache’s Shelf to 1,000 ft (305 m) water depth comprises more than 500 blocks with 1.9 million net acres and year-end 2012 estimated proved reserves of 133 MMbbl of oil and natural gas liquids and 636 bcf of natural gas. In the first quarter of 2013, the fields averaged net production of approximately 50,000 bbl of liquid hydrocarbons and 254 MMcf of natural gas per day.
“The shallower horizons in the Shelf have matured to the point that dependable production growth is more difficult to achieve than from our onshore liquids plays,” said Steven Farris, chairman and CEO of Apache. “We remain excited about the potential associated with the emerging plays under existing salt domes, which is why we retained 50% of the deep rights on 406 blocks held by production and 50% of all rights in 146 primary term blocks.”