Apache Corporation's Gulf of Mexico subsidiary is to sell its non-operated interests in the Lucius and Heidelberg development projects and 11 primary term deepwater exploration blocks to a subsidiary of Freeport-McMoRan Copper & Gold for US$1.4 billion.
"We have combined our deepwater and shelf technical teams to focus on subsalt and other deeper exploration opportunities in water depths less than 1000ft, which have been relatively untested by industry," said Thomas E. Voytovich, executive vice president and chief operating officer for offshore and international operations.
"Discoveries on the shelf have quicker cycle times, require less capital, and provide more options to bring oil and gas to market. Apache has working interests in approximately 650 blocks in the Gulf of Mexico. In addition to the exploration and development of properties in shallower water, Apache continues to pursue joint venture and/or monetization opportunities for its deepwater prospects."
The Lucius unit comprises Keathley Canyon blocks 874, 875, 918 and 919, and the company's working interest is 11.7%. The Heidelberg unit includes Green Canyon blocks 859, 903, 904 and 948 and the company holds a 12.5% working interest. Apache's working interest in the 11 primary term blocks ranges from 16.67-60%.
During Q4 2013, Apache's Gulf of Mexico deepwater region contributed 9167 boe/d to the company's total production. None of the company's producing operations are involved in the sale announced today.
The effective date of the transaction is 1 May 2014. The sale is subject to customary closing conditions and is expected to close by June 30, 2014.