Apache Operations in Egypt

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Historical Overview

Apache entered Egypt in 1994 with a 25 percent interest in the Qarun Concession, where the company made an 11,957-barrel-per-day oil discovery in 1995. Apache acquired nearly all of Spanish company Repsol's concessions in Egypt in a US$410 million deal in January 2001,[1] and as of mid 2013 Apache controlled 9.7 million gross acres, making it the largest acreage holder in Egypt’s Western Desert. Apache is the largest liquid hydrocarbons and natural gas producer in the Western Desert, and the third largest in Egypt.[2]

Current Operations

In 2012, Apache's activities in Egypt led to gross production of 213,000 barrels per day (bpd) of oil and 900 million cubic feet per day (MMcfd) of natural gas, of which Apache netted or 100,000 bpd and 354 MMcfd net. In the same year, Egypt contributed 27 percent of Apache’s worldwide production revenue, 20 percent of its worldwide production, and 10 percent of its year-end 2012 estimated proved reserves. About 18 percent of Apache's gross acreage in Egypt has been developed so far, leaving room for further exploration and development in the future.[3]

In 2012, Apache averaged 25 running rigs, while drilling 188 development and injection wells and 51 exploration wells, approximately 55 percent of which were successful. The company states on its website that in 2013 it plans to continue an active drilling program and plans to invest approximately US$1.1 billion for drilling, recompletion projects, development projects, and seismic acquisition. The website states that there are also several key infrastructure projects underway that will focus on maintaining gas deliverability and bringing additional oil to market.[4]

Contract Areas

Apache operates 22 concessions in joint ventures with the Egyptian General Petroleum Corporation (EGPC), including 23 percent of all available acreage in the Western Desert.[5]

References

  1. "Apache to Acquire Repsol's Egypt Interests for US$410 Million; A 'Step Change' for Apache's Already Formidable Operations in Egypt", PR Newswire, retrieved 12 June 2013.
  2. "Egypt", Apache website, retrieved 12 June 2013.
  3. "Region Overview", Apache website, retrieved 12 June 2013.
  4. "Region Overview", Apache website, retrieved 12 June 2013.
  5. "Understanding Egypt", Apache website, retrieved 12 June 2013.