Apache Selects OGN Group for North Sea Platform Construction

abarrelfullabarrelfull wrote on 24 Nov 2010 06:33
Tags: apache north-sea nyse ogn-group services uk

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Apache Corporation (NYSE, Nasdaq: APA) today announced that it has selected OGN Group, a United Kingdom-based oil and gas engineering and fabrication contractor, to build a new satellite oil production platform for the UK Forties field. The new platform will be bridge-linked to the existing Forties Alpha installation in the Apache-operated field, located on the UK continental shelf.

The contract is worth in excess of $240 million (150 million pounds Sterling) and is expected to generate more than 1,000 jobs over 20 months at OGN Group's Hadrian Yard site in Newcastle and with other local contractors.

"This project will provide Apache with 18 new slots for drilling additional development wells to increase the ultimate recovery from the prolific Forties field, the largest hydrocarbon discovery in the UK North Sea," said James L. House, Apache's regional vice president and managing director — North Sea. "Apache recently completed time-lapse (4-D seismic) surveys at the field and fast-tracked data processing to enable enhanced imaging of the reservoir, which has driven the majority of our drilling success over the past seven years. With the new geophysical data set and additional drilling slots, the outlook is to maintain daily oil production in the range of 60,000 barrels of oil per day during the subsequent three-plus years."

In addition to increased drilling capabilities, the satellite platform will expand critical utility services to the field, including power generation, produced fluid processing, high-pressure gas compression for artificial lift, and dehydration. Onshore construction is expected to be complete by mid-year 2012. The platform will then be towed and installed at the Forties field location in the central North Sea.

Apache holds an approximate 97 percent working interest in the Forties field. In 2003 when the field was acquired from BP, Apache booked proved reserves of approximately 144 MMboe (million barrels of oil equivalent). The original reserve base has been produced as of the end of the first quarter 2010 while a further 173 MMboe of estimated proved reserves remain.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases, on its website, www.apachecorp.com.

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