Apache will also acquire all of BP’s upstream natural gas business in western Alberta and British Columbia. Apache will pay $7bn for the assets, which include estimated proved reserves of 385 million barrels of oil equivalent (boe).
The new acquisition adds 2.4 million net acres to Apache’s portfolio, and is subject to certain preferential rights as well as normal regulatory approvals and conditions in the US, Canada, Egypt and the European Union.
The company said that it is planning a combination of debt and equity securities as well as cash on hand to meet the financial requirement of the acqusition, and has already obtained a $5bn bridge loan facility to meet any financing requirements.
Steven Farris, chairman and CEO of Apache, said: “This is a rare opportunity to acquire legacy positions from a major oil company, with oil and gas production, acreage, infrastructure, seismic data, field studies, exploration prospects and other essential aspects of our business.
“We seldom have an opportunity like this in one of our core areas let alone three. This is a step change that will add muscle, enabling Apache to add value for decades to come through our demonstrated exploitation capabilities and exploration drilling.”
