Apache Completes Egypt Partnership With Sinopec
HOUSTON, Nov. 14, 2013 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced completion of its previously disclosed sale of a one-third minority participation in its Egypt oil and gas business to Sinopec International Petroleum Exploration and Production Corporation. After customary closing adjustments, Apache received $2.95 billion in cash.
Apache will continue to operate the Egypt upstream oil and gas business.
"We welcome Sinopec as our new partner in Egypt; together, we will continue to deliver the tremendous hydrocarbon resources in the Western Desert at attractive rates of return," said G. Steven Farris, Apache's chairman and chief executive officer. "We also look forward to working together in other parts of the world.
"With this transaction, Apache has completed $7 billion in asset sales in the process of rebalancing our portfolio toward assets with predictable growth rates and attractive rates of return," Farris said.
Pro forma for the partnership with Sinopec, the previously completed sale of Gulf of Mexico shelf assets and previously disclosed asset sales in Canada, Apache's third-quarter 2013 production from North American onshore assets would have comprised approximately 56 percent of total production, up from 32 percent in 2009. Also on a pro forma basis, Egypt's contribution would have declined from 26 percent to 16 percent during the same interval.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apache's operations, including statements about our drilling plans and production expectations and asset sales. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2012 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.
SOURCE Apache Corporation