Apache Acquires BP’s Permian Basin Assets

Apache Corporation has completed the acquisition of BP’s oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico for $3.1bn.

Apache has acquired ten Permian field areas with estimated proved reserves of 141 million boe (65% liquids), first-half 2010 net production of 15,110 barrels of liquids and 81mcf of gas per day, and two operated gas processing plants.

The transaction also includes 1.7 million gross acres including 405,000 net mineral and fee acres in prospective areas of the basin with substantial opportunities for new drilling.

The Permian assets are one element of Apache’s previously announced agreement to acquire all of BP’s oil and gas operations, acreage and infrastructure in the Permian Basin and Egypt’s Western Desert, and BP’s upstream natural gas business in western Alberta and British Columbia, Canada.