ApacheCorp.com
Apache Corporation
Apache Corporation was established in the year 1954, with an investor capital of $250,000. It has now grown into a $24 billion asset company, and is one of the world's largest independent organizations that explores, develops, and produces natural gas, crude oil, and natural gas liquids. The company's operations in North America are focused on exploration and production interests in the Gulf of Mexico, the Gulf Coast, East Texas, the Permian Basin, the Anadarko Basin, and the Western Sedimentary Basin of Canada. The company has further interests in onshore Egypt, offshore Western Australia, offshore in the North Sea (North Sea) in the UK, and onshore Argentina. The operational segments of the company are the US, Canada, Egypt, Australia, the North Sea, and other international areas. Apache looks after its interests in many of its US, Canadian, and other international properties, with the help of its subsidiaries, such as, Apache Canada Ltd., DEK Energy Company (DEKALB), Apache Energy Limited (AEL), Apache International Inc., and Apache Overseas, Inc. On January 6, 2006, the company sold off its 55% interest in the "deepwater section of Egypt's West Mediterranean Concession to Amerada Hess."
Apache's US operations focuses on some of the most important of the nation's producing basins, which include:
- The Outer Continental Shelf of the Gulf of Mexico.
- The Anadarko Basin of Oklahoma.
- The Permian Basin of West Texas and New Mexico.
- The Texas-Louisiana Gulf Coast and East Texas.
The company has operations in British Columbia, Alberta, Saskatchewan, and the Northwest Territories. It also has exploration and production interests in the Carnarvon, Perth and Gippsland basins, offshore Australia, Egypt’s Western Desert, the United Kingdom sector of the North Sea, and Argentina.
Operations
United States
Apache has interests in the Gulf Coast region, in and along the Gulf Coast of Mexico. The primary interests of the company lie in the on and offshore areas of Louisiana and Texas. During 2006, Apache performed 296 work-over and recompletion operations. There were 65 total wells drilled, out of 83. During the same time, the region of Gulf Coast constituted 17% of the company's estimated proved reserves.
As for the central region, the assets of the company include the Permian Basin of West Texas and New Mexico, East Texas, and the Anadarko Basin of western Oklahoma. During the year 2006, this region provided the company with 24% of estimated proved reserves. During the same time, the company participated in drilling 374 wells, out of which 363 were completed and became productive. At this time, 615 work-over and re-completions were performed by the company.
Canada
The activities of the company in this region are mainly in the Provinces of Alberta, British Columbia, Saskatchewan, and the Northwest Territories. The company has 24.9% of its estimated proved reserves in this area, which is the largest reserve that the company holds. The company holds over 4.9 million net acres in Canada, which has been the most active drilling area in the year 2006. In this region, the company participated in 874 gross wells, out of which 740 were completed as productive. The company conducted 274 work-over and recompletion projects.
In 2005, a firm-in agreement was signed with ExxonMobil Corporation (ExxonMobil), out of which the company benefited in having the use of 650,000 acres of undeveloped properties, situated in the Western Canadian province of Alberta. This agreement allowed Apache to drill 145 new wells in a 36 month period, with an upside potential for further drilling. The agreement allowed ExxonMobil to receive royalty fee on lands and convertible working interest on leasehold acreage.
Egypt
Apache's operation in Egypt is generally based on production sharing contracts. Under this contract, Apache has to pay all the capital expenditure costs involved in exploration and development activities. A part of the production, which is generally fixed at up to 40%, has been made available to Apache to recover its investment in operating and capital expenditure costs. The balance of 60% is allocated between Apache and the Egyptian General Petroleum Corporation (EGPC), as defined in the contract. As of December 31, 2006, Egypt is the country where the company has held the largest single acreage position, being over 10.2 million gross acres in 19 separate concessions. The lease agreement within concessions has a time limit of 25 years, with possibility of extension for commercial discoveries, or on a re-negotiated agreement. The country has contributed to 21% of Apache's production revenues and total production.
Australia
The interests of the company in Australia have been mainly in the offshore Carnarvon, Gippsland, Browse, and Perth Basins. In these regions, the company holds 6.8 million net acres in 35 Exploration Permits, 10 Production Licenses, and six Retention Leases. Out of these, nine are operated by Apache. During the year 2006, the company participated in drilling 23 wells. During this time the region accounted for 8.8% of the company's estimated proved reserves.
North Sea
During the year 2006, this region contributed 21.5 million barrels of oil equivalent. Apache continues to develop this area around the Forties field in the North Sea.
Argentina
The purchase of Pioneer's operations in Argentina was completed by Apache in the year 2006. This area is estimated to have proved reserves of 22 million barrels (MMbbls) of liquid hydrocarbons, and 297 billion cubic feet (Bcf) of natural gas. During the year 2006, the company had 9.9 million barrels of oil equivalent (MMboe) of production, and 110.6 MMboe of estimated proved reserves, which comes to approximately 5.4 percent and 4.8 percent, respectively of Apache's total production and reserves.
With its regional offices and operations in Argentina, Australia, Canada, Egypt, and UK North Sea, the activities of the company have spread wide. When Apache first went into business in 1954, the ambition of oil exploration lay in new exploratory wells. The company followed the policy of "acquire and exploit" existing fields, and there are few companies who do it better than Apache. The production in the Forties field, in the North Sea, was increased by the company, after it acquired the region from BP PLC. This was done by cutting costs all the time, which was achieved through automating the production, and switching from diesel to natural gas, that was being produced on-site. In 2006, the earnings of the company jumped to 52%, providing a staggering margin of 31.5% net.
Employee Relations
With the absolute commitment of its employees, Apache today is a large multinational company with market capitalization of approximately $21 billion, with reserves of half oil and half natural gas. This has been possible with the company's employees dedicated to the mission that the company has. The company continues to fulfill its mission to become a dynamic organization in global exploration and production, providing oil and natural gas for better human living. The company employees believe in their firm commitment to:
- Find and produce essential energy supplies, contributing to an elevated human living.
- Preserving and maintaining the unique culture of the company.
- Adhering to the commitment related to the company's growth and building wealth for the shareholders.
Additional Information
Related Domains
External Links
- Alexa: ApacheCorp.com
References
1. Reuters 2. Apache Corporation 4. Wikipedia 5. ?
