New York Stock Exchange Listed oil and gas company, Apache Corp, reported that it had concluded its acquisition of BP’s Permian assets, inclusive of its oil and gas operations, acreage and infrastructure. The Permian basin is in the west of Texas and the deal puts Apache Corp as the owner of 10 Permian field areas and two operated gas processing plants.
Other than that, the deal also sees Apache Corp acquire BP’s 1.7 million gross acres, inclusive of 405,000 net mineral and fee acres for which the firm could reap considerable drilling opportunities. However, the company remitted $3.1 billion to BP Plc for the Permian assets, inclusive of a $1.5 billion deposit the firm paid at the end of July, and the balance it remitted upon completion of the deal. But regardless, the company said that some of the assets it had acquired were still pending preferential rights.
The agreement deal will see the British Oil giant, BP, run the Permian properties on Apache’s behalf through 30th of November this year. The closure of the deal follows months of speculation and talks, with Apache announcing earlier on that it had struck a deal with BP Plc for the acquisition of not only its Permian assets, but its Egyptian Western Desert operations and most of BP’s gas operations in Alberta and British Columbia in Canada.
The acquisition of the Canadian and Egypt assets is what is still pending customary regulatory confirmations. The Permian acquisition is a complete deal and according to Apache Corp, it is funding the investments using the money it accrued from its recent offerings, debt and its cash at hand. BP has been forced to sell its assets to meet the costs of the Gulf of Mexico oil spill crisis.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom, North Sea, Australia and Argentina. It is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids.
The company’s growth plan is geared at growing its profitability for the long-term benefit of its shareholders by building a portfolio of core areas that offer long-term growth opportunities. Apache said the assets complement its existing operations by addition of proved reserves of 385 million barrels of oil equivalent and approximately 83,000 boe per day of production, substantial development opportunities and additional resource potential.