Exhibit 99.1
NEWS RELEASE
CONTACTS:
(Media):
|
David Parker | +61 8 6218 7460 (Perth) | ||
| Bill Mintz | +1 713 296 7276 | |||
| Patrick Cassidy | +1 713 296 6100 | |||
(Investors):
|
Alfonso Leon | +1 713 296 6692 | ||
(Website):
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www.apachecorp.com |
APACHE GIVES GO AHEAD FOR WHEATSTONE LNG PROJECT IN AUSTRALIA;
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
Houston, Sept. 26, 2011 — Apache Corporation (NYSE, Nasdaq: APA) today announced that an
Apache Australian subsidiary and its partners will proceed with development of the Chevron-operated
Wheatstone LNG (liquefied natural gas) Project in Western Australia.
The first phase of the project will comprise two LNG processing trains with a combined
capacity of approximately 8.9 million tonnes per annum (Mtpa), a domestic gas plant and associated
onshore and offshore infrastructure.
Apache will supply gas to Wheatstone from its Julimar and Brunello natural gas fields,
Carnarvon Basin discoveries made in 2007. Expected investment, net to Apache, for the field and LNG
facility development, including drilling, transportation, and other infrastructure, is
approximately $4 billion, which will be spread over five years. First production is planned for
2016.
The Wheatstone Project is a joint venture between the Australian subsidiaries of Chevron
(operator, 73.6%), Apache (13.0%), Kuwait Foreign Petroleum Exploration Company (KUFPEC), (7.0%)
and Shell (6.4%). Apache, Chevron, and KUFPEC have signed long-term LNG sales-and-purchase
agreements with Tokyo Electric Power and Kyushu Electric Power Company, Inc.
-more-
APACHE GIVES GO AHEAD FOR WHEATSTONE LNG PROJECT IN AUSTRALIA;
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
— ADD 1
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
— ADD 1
“Wheatstone is an important step for Apache in monetizing our natural gas discoveries off the
coast of Western Australia,” said G. Steven Farris, Chairman of the Board and Chief Executive
Officer for Apache. “This is a long term, legacy asset. Apache will realize value over more than
20 years from its Julimar and Brunello gas discoveries, which combined have estimated recoverable
gas in excess of 2.1 trillion cubic feet.
“Wheatstone also represents Apache’s first project in the growing worldwide market for LNG,
providing an additional pathway for premium pricing of our gas resources offshore Australia,”
Farris said. “It’s also scalable, allowing for development of any future discoveries in the
Carnarvon Basin, where we hold interests in several prospective blocks.”
Apache Julimar Pty Ltd and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of Kuwait Foreign
Petroleum Co., will develop facilities to supply gas from their Julimar and Brunello discoveries
(the Julimar Development Project) to the Wheatstone Project. Apache has a 65 percent interest in
the Julimar Development Project and is the operator of the project.
The Julimar Development Project is expected to generate average net sales to Apache of
approximately 140 million cubic feet per day (MMcfd) of LNG (equivalent to 1.07 Mtpa) at prices
pegged to world oil markets, 22 MMcfd of sales gas into the domestic market, and 3,250 barrels of
condensate per day. During second quarter 2011, Apache’s Australian production averaged
approximately 180 MMcf and 40,000 barrels of oil per day.
Apache Corporation is an oil and gas exploration and production company with operations in the
United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. From time to
time, Apache posts announcements, updates and investor information, in addition to copies of
all press releases, on its website, www.apachecorp.com.
-end-
APACHE GIVES GO AHEAD FOR WHEATSTONE LNG PROJECT IN AUSTRALIA;
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
— ADD 2
APACHE’S JULIMAR AND BRUNELLO FIELDS TO PROVIDE FEEDSTOCK GAS
— ADD 2
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,”
“believes,” “estimates,” “expects” and similar references to future periods. These include
statements about the expected date for a final investment decision on the Wheatstone project,
development of LNG facilities, LNG marketing activities and future production and exploration
prospects in Western Australia. While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the circumstances, whether actual
results and developments will meet our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance, and financial condition to differ
materially from our expectations. See “Risk Factors” in our 2010 Form 10-K as amended by Amendment
No. 1 to our annual report on Form 10-K/A filed with the Securities and Exchange Commission for a
discussion of risk factors that affect our business. Any forward-looking statement made by us in
this news release speaks only as of the date on which it is made. Factors or events that could
cause our actual results to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future development or otherwise, except as may be required
by law.