Apache shuts in oil production from Van Gogh offshore Western Australia

By Phaedra Friend Troy

According to a report from Reuters, American Independent Apache Corp. (NYSE:APA) and Japanese producer Inpex have curtailed oil production from the Van Gogh oil field offshore Western Australia.

Production is shut-in indefinitely while the Ningaloo Vision FPSO used to develop the Van Gogh field is undergoing unexpected repairs, Reuters revealed.

Potentially six 400,000-barrel cargoes of heavy sweet crude that were scheduled to be loaded in October and November have been delayed. Delays may run into December, as well.

Partners on the project are determining whether to declare force majeure on the production or not.

Located on Production License WA-35-L in the Exmouth Basin offshore Western Australia, the Van Gogh oil field began production in February 2010.

Developed via 19 horizontal wells, two water injection wells and one gas injection well, Van Gogh is produced via the Ningaloo Vision FPSO, which has a daily production capacity of 150,000 barrels of liquids and 63,000 barrels of oil, as well as storage capabilities of 540,000 barrels of oil.

Apache serves as the operator of Vangogh with 52.5 percent interest, and Inpex holds the remaining 47.5 percent stake.



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