Apache to Buy BP Gulf of Mexico Fields

Published Apr 20, 2006 12:01 AM by The Maritime Executive

Apache Corporation said that it has agreed to buy 18 oil fields in the Gulf of Mexico from BP Plc. The deal, announced Wednesday, involves about $1.3 billion in cash, and further expands Apache's growing offshore drilling activities. The firm also said it plans to buy back about $1 billion worth of stock.

The properties contain estimated proven reserves of 27 million barrels of oil and other liquids and 185 billion cubic feet of natural gas. At the end of 2005, Apache controlled estimated proved reserves of about 976 million barrels of oil and 6.8 trillion cubic feet of natural gas.

The deal is subject to government approval, but is expected to close by the end of the second quarter.