Overview

U.K. North Sea

Apache has interests in approximately 380,000 gross acres in the U.K. North Sea. The region contributed 13 percent of Apache’s 2016 production and approximately 10 percent of year-end estimated proved reserves.

Apache entered the North Sea in 2003 after acquiring an approximate 97-percent working interest in the Forties Field. Since acquiring Forties, Apache has actively invested in the region and has established a large inventory of drilling prospects through successful exploration programs and the interpretation of acquired 3-D and 4-D seismic data.

In 2011, Apache acquired Mobil North Sea Limited, providing the region with additional exploration and development opportunities across numerous fields, including operated interests in the Beryl, Nevis, Nevis South, Skene and Buckland fields and nonoperated interests in the Maclure and Nelson fields. The Beryl Field, which is a geologically complex area with multiple fields and stacked pay potential, provides significant exploration opportunity. The North Sea Region plays a strategic role in Apache’s portfolio by providing competitive investment opportunities and potential reserve upside with high-impact exploration potential.

During the year, the region drilled 12 development wells with an 83-percent success rate: six at Forties, five at Beryl and one at Aviat. In addition, Apache drilled or participated in three exploration wells with a 33-percent success rate. The Storr discovery, an exploration prospect targeting the Beryl and Nansen sands, encountered hydrocarbons in two separate fault blocks. The region is evaluating a development plan for the Storr discovery. Apache holds a 55-percent working interest in the prospect.

Apache progressed the development of the 2015 Callater (formerly K) exploration discovery in the Beryl area, with first production projected in the second half of 2017. Initial production is expected at 20,000 barrels of oil equivalent per day on a gross basis. Apache plans to drill two additional wells in the second half of the year. Apache holds a 55-percent working interest in Callater and operates the field. The region also continued to assess development plans for two earlier exploration discoveries, Seagull and Corona, in which Apache holds 35 and 100 percent interests, respectively.
 
Also in 2016, Apache completed the Aviat gas-for-power project at Forties. This project enables a switch from diesel to natural gas to power the Forties Field. The use of natural gas to power the field will extend the economic life, lower operating costs and reduce certain reliability and safety risks associated with bunkering diesel. Annual fuel and other savings are projected at $15 million.

In 2017, Apache plans to operate an average of three rigs in the North Sea Region, two platform rigs (one at Forties and one at Beryl) and two semi-submersible rigs on rig-sharing agreements, and drill 15 to 16 wells.

U.K. OPERATIONAL HIGHLIGHTS

  Third-QUARTER
2017
Third-QUARTER
2016
Oil production (Bpd) 49,945 49,192
Total liquids production (Bpd) 51,164 50,899
Natural gas production (Mcfd) 50,057 69,509
Barrels of oil equivalent per day 59,507 62,475

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