Apache consolidates Gulf of Mexico assets with $2.7-billion Mariner merger

Apache Corporation, the second-largest independent oil and gas company in the US after Anadarko Petroleum, is consolidating in the Gulf of Mexico by agreeing to acquire rival Mariner Energy  for $2.7 billion, its second major acquisition in the region in just three days.

The Gulf of Mexico has seen a number of major oil players exiting the region to focus on their core business, while others have been consolidating.

Apache, which is the largest held-by-production acreage owner and the second-largest producer in Gulf waters less than 1,200 feet deep, will give Mariner shareholders 0.17043 a share of Apache common stock and $7.80 in cash for each outstanding share of Mariner's stock. Apache also will assume Mariner's $1.2 billion debt.

The acquisition is Houston-based Apache's second in the Gulf of Mexico in three days. Earlier this week on Monday Apache announced a deal to acquire Devon Energy Corporation's oil and gas assets on the Gulf of Mexico Shelf for $1.05 billion. (See: Apache to acquire Devon's Gulf of Mexico assets for $1.05 billion)

"We have considered extending our Gulf of Mexico operations into the deepwater for a number of years," said Steven Farris, Apache's chairman and chief executive officer. "This is the right set of assets and the right time for Apache to expand its deepwater presence.

Mariner's deepwater portfolio includes nearly 100 blocks, seven discoveries in development, including interests in Lucius and Heidelberg and more than 50 prospects.