Apache Corp to buy ExxonMobil's North Sea assets for $1.75 bn

Apache Corp, the second-largest independent oil and gas company in the US after Anadarko Petroleum, is buying oil giant ExxonMobil's North Sea assets for about $1.75 billion in order to increase its North Sea production.

The acquisition will be executed between Apache's subsidiary Apache North Sea Limited and Exxon Mobil Corporation's Mobil North Sea LLC assets, Apapche said.

"These major legacy assets will expand Apache's presence in the North Sea. They bring us significant remaining life, high production efficiency and quality reservoirs - the best North Sea assets we've evaluated since acquiring the Forties Field in 2003," said G Steven Farris, Apache's chairman and CEO.

The assets including the Beryl field and related properties to be acquired include:

  • Operated interests in the Beryl, Nevis, Ness, Nevis South, Skene and Buckland fields;
  • Operated interest in the Beryl/Brae gas pipeline and the SAGE gas plant;
  • Non-operated interests in the Maclure, Scott and Telford fields; and
  • Benbecula (West of Shetlands) exploration acreage.

The fields have current net production of approximately 19,000 barrels of oil and natural gas liquids and 58 million cubic feet (MMcf) of natural gas per day. The fields hold estimated proved reserves of 68 million barrels of oil equivalent.

The transaction, which is expected to close at year-end 2011, will increase Apache's North Sea production by 54 per cent and proved reserves by 44 per cent.