Apache Corp. (NYSE: APA) Sells Egypt Assets
Sinopec International Petroleum Exploration & Production Corp. and Apache Corp. (NYSE:APA) have agreed to form an international upstream partnership for oil and gas projects. Sinopec will buy 33 percent of Apache’s oil and gas operations in Egypt for $3.1 billion. Apache’s Egypt operations accounted for 27 percent of its total production revenue and 10 percent of its proven reserves in 2012.
The purchased assets include 9.7 million gross acres with an average net production of 100 thousand boepd and 354 MMcfd. With the acreage only 18 percent developed, Sinopec expects its partnership with Apache to boost production in the area an additonal 130 thousand boepd.
This deal coincides with Apache’s previously announced plan to divest $4 billion in assets by the start of 2014. The company plans to pay off debt and move forward with a 30 million share buyback program to fund international projects.
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