North Sea.
Apache has consistently said it will look for good opportunities in the North Sea.
The company’s track record suggests it will invest significantly in the ExxonMobil assets.
There will no doubt be a period of getting to know the assets, but for the UK continental shelf (UKCS) it has to be good news that Apache is a proven investor and is happy to play a long game.
No doubt the new owners will challenge the supply chain and stakeholders to work with them in the new era but that will present lots of opportunities as well.
At the same time, ExxonMobil remains a long-term investor and has interests in more than 40 producing fields. It will continue to play an important role in the UK upstream and downstream sectors.
Looking outwith the Apache-ExxonMobil deal, does this acquisition prove the North Sea is alive and kicking?
I think it strengthens the message that BP and other operators put out during last month’s Offshore Europe event in Aberdeen when they predicted there would be focused investment in some of the best North Sea assets.
For the whole basin to thrive and develop, we need a community of explorers, developers and producers and it’s likely we will see a broader canvas of players in this sector.
The North Sea has a large infrastructure and we need significant, well-funded players to come in to sustain that, but this deal ultimately proves the basin has an exciting future and dilutes the widely-held belief that the UKCS is on its last legs.
Bob Ruddiman is the head of energy at law firm McGrigors
By Bob Ruddiman, head of energy at law firm McGrigors