Apache has agreed to sell its Gulf of Mexico Shelf operations and properties to Fieldwood, an affiliate of Riverstone Holdings, for cash proceeds of $3.75bn. In addition, Fieldwood will assume all asset retirement obligations for these properties, which, as of 30 June 2013, Apache estimated at a discounted value of approximately $1.5bn. Apache will retain 50% of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested.
Apache's Shelf portfolio comprises more than 500 blocks with year-end 2012 estimated proved reserves of 133 mbl of oil and natural gas liquids and 636 bcf (18 bcm) of natural gas. In the first quarter of 2013, the fields averaged net production of approximately 50,000 bbl/d of liquid hydrocarbons and 254 mcf/d (7.2 mcm/d, i.e. 2.6 bcm/year) of natural gas.
Apache previously announced plans to divest $4bn in assets by year-end 2013 as part of its ongoing portfolio assessment and to focus on more recently acquired properties.