Apache completes acquisition of BP assets in Egypt's Western Desert
Apache Corporation announced that a subsidiary has completed its acquisition of BP's oil and gas operations, acreage and infrastructure in Egypt's Western Desert. The transaction marks the final step in Apache's previously announced three-part acquisition of BP assets.
Apache's subsidiary paid $650 million to acquire four development leases and one exploration concession across 394,300 acres. The assets have estimated proved reserves of 20 million barrels of oil equivalent (59 percent liquids), and first-half 2010 net production of 6,016 barrels of oil and 11 million cubic feet of natural gas per day.
The BP assets also include strategically positioned infrastructure— a natural gas processing plant, a liquefied petroleum gas plant and oil and gas export lines — that will enable Apache to increase production from its existing fields in the Western Desert.
In October, Apache subsidiary Apache Canada Ltd. completed its acquisition of substantially all of BP's upstream natural gas business in western Alberta and British Columbia. In August, another Apache subsidiary completed its acquisition of all of BP's oil and gas operations, acreage and infrastructure in the Permian Basin. Apache financed the acquisitions with a combination of debt and equity securities as well as cash on hand.