Show Hide image

Apache acquires BP assets in Egyptian Western Desert

Apache subsidiary pays $650m for assets in Egypt's Western Desert.

Oil and gas explorer Apache has acquired BP's oil and gas operations, acreage and infrastructure in Egypt's Western Desert.

Apache's subsidiary paid $650m to acquire four development leases and one exploration concession across 394,300 acres.

The transaction marks the final step in Apache's previously reported three-part acquisition of BP assets.

The assets have estimated proved reserves of 20 million barrels of oil equivalent (59% 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 completed its acquisition of substantially all of BP's upstream natural gas business in western Alberta and British Columbia.