Apache Corporation and Total S.A. Announce 50-50 Joint Venture in Block 58 Offshore Suriname; Total to Become Future Operato...
December 22 2019 - 7:00PM
Apache Corporation (NYSE, Nasdaq: APA) and Total S.A. (NYSE: TOT)
today announced a joint venture agreement to explore and develop
Block 58 offshore Suriname.
Under the terms of the agreement, Apache and Total will each
hold a 50 percent working interest in Block 58, which comprises
approximately 1.4 million acres in water depths ranging from less
than 100 meters to more than 2,100 meters. Apache will operate the
first three exploration wells in the block, including the Maka
Central-1 well, and subsequently transfer operatorship to
Total.
In exchange for a 50-percent working interest, Apache will
receive various forms of consideration, including: $5 billion of
cash carry on Apache’s first $7.5 billion of appraisal and
development capital; 25% cash carry on all of Apache’s
appraisal and development capital beyond the first $7.5 billion;
various cash payments in conjunction with closing of the joint
venture agreement and future production from joint development
projects; and reimbursement of 50% of all costs incurred to date in
Block 58. Apache and Total have also agreed to bear
their proportionate working interest share of costs on all future
exploration wells. The transaction has received all necessary
approvals from Suriname and is expected to close within three days.
Further details of the terms are outlined on Apache’s website.
“Suriname Block 58 presents a unique, large-scale oil resource
opportunity, and we are very pleased to welcome Total to our
existing partnership with Staatsolie, the national oil company of
Suriname. Total’s extensive offshore operational experience and
global footprint make it an ideal partner for a block of this size
and potential,” said John J. Christmann, CEO and President of
Apache. “Upon meeting certain drilling commitments, the partnership
has the rights to explore the entire block through mid-2026 without
acreage relinquishments. This provides for a thorough evaluation of
the multiple play types we have identified in this emerging
oil-prone basin.”
“We are very pleased to team up with Apache and Staatsolie, and
to become operator of this promising license where we will bring
our deepwater expertise. It is indeed a unique exploration
opportunity in a prolific basin,” said Patrick Pouyanné, Chairman
and CEO of Total.
Maka Central-1 well status“Apache and Total are
encouraged by the preliminary information and test results from the
two upper Cretaceous play types encountered thus far,” added
Christmann. “Deepening and testing operations continue at Maka
Central-1. Following the completion of these activities, the rig
will be moving to the next location. When the companies are
prepared to fully characterize results of Maka Central-1,
additional information will be provided.”
About ApacheApache Corporation is an oil and
gas exploration and production company with operations in the
United States, Egypt and the United Kingdom. Apache posts
announcements, operational updates, investor information and copies
of all press releases on its website, www.apachecorp.com.
Forward-looking statementsThis news release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements can be identified
by words such as “anticipates,” “intends,” “plans,” “seeks,”
“believes,” “estimates,” “expects,” “guidance,” “outlook,”
“projects,” “will,” and similar references to future periods. These
statements include, but are not limited to, statements about future
plans, expectations and objectives for Apache’s operations,
including statements about our capital plans, drilling plans,
production expectations, asset sales, and monetizations. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See "Risk Factors" in our 2018 Form 10-K filed with the U.S.
Securities and Exchange Commission (“SEC”) for a discussion of risk
factors that affect our business. Any forward-looking statement
made by us in this news release speaks only as of the date on which
it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for
us to predict all of them. We undertake no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future development or otherwise, except as may be
required by law.
ContactsInvestor: (281)
302-2286 Gary ClarkMedia:
(713) 296-7276
Phil
West
Website: www.apachecorp.com
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