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Australia

Apache is the second largest operated volume producer of oil and gas in the Carnarvon Basin in Western Australia. We operate 16 oil and gas production facilities, providing in excess of 30 percent of the State’s domestic natural gas supply.

Projects

Devil Creek

Detailed engineering associated with the Devil Creek Development Project (DCDP) is essentially complete and procurement of materials and equipment is well advanced. Fabrication of the Reindeer Wellhead Platform has commenced in China, and the fabrication and assembly of the Devil Creek Gas Plant modules is underway in Thailand. Site construction works are underway at Devil Creek for the Gas Plant, Onshore Pipeline and Horizontal Directional Drilled (HDD) Shore Crossing. Contracts for the offshore pipeline and Wellhead Platform installation have been awarded and preparations are underway ready to commence this work in the third quarter of 2010. Gas delivery from the Reindeer field is expected to commence by the fourth quarter of 2011 at a rate of 110 terajoules (Tj) per day. Located south of Karratha in the northwest of Western Australia, DCDP will be West Australia's newest domestic gas hub and will be operated by Apache 55 percent. Gas customers will include both resoures and industrial operations.
www.apachedcdp.com.au

Macedon

Apache began the front-end engineering design (FEED) study for the BHP-operated Macedon domestic gas development during the third quarter with a final investment decision expected in June 2010. Apache has a 28.6 percent working interest in the project.

Wheatstone LNG

Apache and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) joined with Chevron to develop the Wheatstone liquefied natural gas (LNG) hub in Western Australia. Apache and KUFPEC signed an exclusive agreement to supply gas from the Julimar and Brunello discoveries and become foundation equity partners in the Chevron-operated Wheatstone project facilities.

This project unlocks 2.1 trillion cubic feet of gas reserves at two of Apache's largest discoveries and generates steady net sales of about 190 million cubic feet per day and 5,100 barrels per day for 15 years at prices pegged to world oil markets. Apache will have a net 16.25 percent interest in the Wheatstone phase 1 development. As a foundation partner, Apache will also have the opportunity to participate in future expansion of the project providing additional options for gas commercialization. A final investment decision on the first phase of the project is slated for 2011, after the FEED is completed.