Apache, KUFPEC to Join
Chevron's Wheatstone LNG Project in Australia
HOUSTON, Oct 22, 2009
/PRNewswire-FirstCall via COMTEX News Network/ -- Apache Corporation (NYSE,
Nasdaq: APA) and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) today
announced that their subsidiaries are joining Chevron to develop the
Wheatstone liquefied natural gas (LNG) hub in Western Australia. Apache and
KUFPEC have signed an exclusive agreement to supply gas from their Julimar
and Brunello discoveries and become foundation equity partners in the
Wheatstone project facilities.
"We are pleased
to have an opportunity to be a foundation partner with Chevron in the first
LNG hub in Western Australia," said G. Steven Farris, Apache's chairman
and chief executive officer.
"Wheatstone is a
potential game-changer for Apache, unlocking 2.1 trillion cubic feet of gas
reserves at two of Apache's largest discoveries and generating steady
production for 15 years at prices pegged to world oil markets."
"Apache will also
have the opportunity to participate in future expansion of the project - an
important advantage given our active exploration program in the Greater
Carnarvon Basin of Australia," Farris said.
Wheatstone's first
phase will consist of two LNG processing trains with a combined capacity of
approximately 8.6 million tons per year. The facility will be located at
Ashburton North on the mainland of Western Australia. A final investment
decision on the first phase of the project is slated for 2011, after the FEED
is completed. Apache's net share of FEED costs is expected to be $110
million.
Chevron, which has a
100-percent interest in the Wheatstone field, will operate the LNG facilities
with a 75-percent project interest. Apache's subsidiary, Apache Julimar Pty
Ltd, and KUFPEC's subsidiary, KUFPEC Australia (Julimar) Pty Ltd, will own
the remaining 25-percent project interest. Apache Julimar has a 65-percent
interest and operates the Julimar and Brunello fields; KUFPEC Australia
(Julimar) holds the remaining 35 percent. Apache Julimar's 16.25-percent net
interest in the project may be reduced at the point of a final investment
decision to accommodate investments by the project's foundation customers.
Apache's net capital
for the project, before any sell-down, currently is estimated to be $1.2
billion for upstream development of the Permit WA-356-P fields and $2.9
billion for Wheatstone facilities including the LNG plant. The funding will
be disbursed over several years as the project is developed. Apache projects
net sales will be approximately 190 million cubic feet of gas and 5,100
barrels of condensate per day with a 15-year production plateau.
Apache Corporation is
a large oil and gas independent with operations in the United States, Canada,
the United Kingdom sector of the North Sea, Egypt, Australia and Argentina.
This news release
contains certain "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995 including, without limitation, expectations, beliefs,
plans and objectives regarding production and exploration activities. Any
matters that are not historical facts are forward-looking and, accordingly,
involve estimates, assumptions, risks and uncertainties, including, without
limitation, risks, uncertainties and other factors discussed in our most
recently filed Annual Report on Form 10-K, on our Web site and in our other
public filings and press releases. There is no assurance that Apache's
expectations will be realized, and actual results may differ materially from
those expressed in the forward-looking statements. We assume no duty to
update these statements as of any future date.
APA-AU
www.apachecorp.com
SOURCE Apache Corporation
http://www.apachecorp.com