Apache Corp. reported plans to restructure the company into three “super regions” following a series of acquisitions and divestitures over the last 5 years.
The Houston independent says the structure “will reduce redundancy and increase operational efficiency,” emphasizing “the growth potential of its North American business and the strong free-cash-flow-generation of its Egypt and North Sea assets.”
Apache is merging its North American resources into the Permian region and the Houston region. The third region is the international and offshore region, comprising Apache’s Egypt, North Sea, and Gulf of Mexico assets.
The Houston region will consolidate operational activities for the Eagle Ford, Anadarko basin, Texas Panhandle, and Canadian properties into one region. The Canadian properties will continue to be operated out of the existing office in Calgary.
The Houston region reorganization includes closing Apache’s regional office in Tulsa and relocating a number of Tulsa employees. Apache says this will consolidate employee expertise in a single office location to foster increased collaboration and technology transfer among asset teams.
The Permian region will continue to include the Midland basin and the Central basin platform operated out of Midland with the Delaware basin receiving separate and individualized management in San Antonio.
Apache says it will reposition its overall cost structure by yearend. The company reported a first-quarter net loss of $4.7 billion, including an aftertax ceiling-test write down of $4.7 billion due to “substantially lower commodity prices (OGJ Online, May 7, 2015).”
Apache is realigning its senior operational leadership to support the organizational structure. All changes are effective immediately but will include a transition period through the end of July.
Timothy J. Sullivan has been appointed to the newly created role of senior vice-president, operations support, based in Houston, where he will support John J. Christmann IV, appointed chief executive officer this year, in operational strategy, capital allocation, market intelligence, and marketing (OGJ Online, Jan. 20, 2015).
Thomas E. Voytovich will assume the role of executive vice-president, international and offshore region and exploration and production technology. In addition to his current management of Apache’s operations in Egypt, the North Sea, and the Gulf of Mexico, he will oversee the exploration and production technology and engineering technology service teams. Voytovich will remain in the company’s Houston headquarters.
James L. House has been named to the newly created position of senior region vice-president, Houston region, and will be based in Apache’s Houston headquarters.
Grady L. Ables will assume the role of region vice-president, Canada region and president, Apache Canada, and report up through the Houston region. He will be based in the company’s Calgary office.
Faron J. Thibodeaux will continue to oversee the company’s operations in the Midland basin and Central basin platform as the senior region vice-president, Permian region, based in Apache’s Midland office.
Steven J. Keenan will oversee the North American unconventional resources technology team, unconventional resources new ventures team, and the company’s operations in the Delaware basin as the senior region vice-president, Delaware basin. Keenan will remain in Apache’s San Antonio office.
Cory L. Loegering will assume the role of region vice-president, UK region, and managing director, Apache North Sea, following House’s relocation to Houston. He will be based in Apache’s Aberdeen office and continue to report to Voytovich.
Thomas M. Maher will continue to oversee the company’s operations in Egypt as the region vice-president, Egypt region and general manager, Apache Egypt, from the company’s Cairo office.