Apache completes $3.1B BP Permian Basin acquisition

By Phaedra Friend Troy

US producer Apache Corporation (NYSE:APA) has completed a portion of its $7 billion asset acquisition from British major BP (NYSE:BP). The $3.1 billion acquisition of the West Texas and New Mexico Permian Basin oil and gas properties has been completed, the independent reported.

The acquisition contains 10 Permian Basin oil and gas fields, including Block 31, Empire/Yeso, SELea, Brown Bassett, Block 16/Coy Waha, Spraberry, Wilshire, North Misc, Pegasus and Delaware Penn. 

The Permian Basin area holds an estimated 141 million barrels of oil equivalent in proved reserves, 65 percent of which is liquids. In the first half of 2010, the properties produced an average of 15,110 barrels of liquids and 81 million cubic feet of natural gas a day.

The acquired assets also include two operated gas processing facilities.

Additionally, the Permian Basin assets include 1.7 million gross acres with myriad prospects for drilling and future production.

The Permian Basin acquisition is part of the $7 billion property purchase with BP that also includes all of BP's acreage, infrastructure, and oil and gas properties in the Western Desert of Egypt, as well as most of its upstream natural gas business in western Alberta and British Columbian, Canada.

The completion of the Egyptian and Canadian asset acquisition is still undergoing regulatory approvals.

This divestment is part of the massive sell-off that BP is undertaking to pay for the Deepwater Horizon accident and Macondo oil spill in the Gulf of Mexico.

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