Apache Picks Up BP Assets in $7 Billion Deal, Egypt Included

BP seems to be lining up some cash to replace funds spent to date on the major Gulf of Mexico oil leak. The company has entered into an agreement with Apache Corp. worth $7 billion which will increase the US independent’s position in Egypt’s Western Desert as well as in the US and Canada.
Under the agreement Apache will acquire all of BP’s oil and gas operations, acreage and infrastructure in three of Apache’s core areas of operations. The company will acquire assets in Egypt’s Western Desert where Apache is the North African country’s largest producer and in the Permian Basin of West Texas and New Mexico. The company will also acquire a substantial chunk of BP’s upstream natural gas business in western Alberta and British Columbia.
Apache will pay $7 billion for all of the assets, which include estimated proved reserves of 385 million boe and about 83,000 boepd of production. The transaction also adds 2.4 million net acres to Apache's global portfolio and provides it with substantial development opportunities with the potential to increase its resources.
“This is a rare opportunity to acquire legacy positions from a major oil company, with oil and gas production, acreage, infrastructure, seismic data, field studies, exploration prospects, and other essential aspects of our business,” said G. Steven Farris, Apache’s chairman and CEO. “We seldom have an opportunity like this in one of our core areas let alone three. This is a step change that will add muscle, enabling Apache to add value for decades to come through our demonstrated exploitation capabilities and exploration drilling.”
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