US oil firm Apache insisted last night it was investing more money in the UK North Sea this year.
A spokesman for the Houston company said spending in the area was likely to be up from last year’s total of nearly £540million.
He was speaking after 2013 accounts for Aberdeen-based subsidiary Apache North Sea (ANS) suggested a spending slowdown.
Forties field majority owner and operator ANS said it had invested £435million in the area last year and £521million in 2012.
The company added: “In 2014, Apache North Sea Limited is forecast to invest approximately $528million (£325million) on a diverse set of capital projects.”
But Apache’s spokesman said ANS was just one of its subsidiaries operating in the region.
The group has invested heavily in the Forties field in recent years.
In its latest accounts, ANS highlighted expectations of another year of active drilling in 2014 – three platform rigs and a jack-up – and progress on the new Forties Alpha satellite platform.
Recent investment in Forties, including spending on the satellite, is expected to extend the life of the North Sea’s first big oil find by 20 years.
Apache entered the North Sea through its £401million acquisition of Forties – discovered in 1970 – from BP in 2003.
Earlier this year, ANS managing director Jim House said Apache was “in it for the long run” in Scottish waters after a move to new headquarters on the outskirts of Aberdeen. ANS moved all 460 of its north-east employees from three sites around Aberdeen to a new building, Caledonia House, at Prime Four Business Park in Kingswells. The lease runs for 15 years, with extension options.
ANS was substantially boosted by the 2011-12 acquisition of the assets of Mobil North Sea, including the Beryl field, from ExxonMobil.
The £1.1billion takeover gave it new exploration and development opportunities, including operated interests in the Beryl, Nevis, Nevis South, Skene and Buckland fields and non-operated stakes in Maclure, Scott and Telford.
ANS’s 2013 accounts also revealed a plunge in pre-tax profits to £70.6million from £483.3million the year before, and turnover flat at £1.2billion.
Production was also flat at 18.2million barrels of oil equivalent.
The firm said its 2013 profits had been impacted by higher costs and a one-off impairment charge resulting from a revaluation of assets.
It also highlighted harsh operating conditions in the North Sea and the associated costs, “coupled with the relative maturity of the basin”, as risks facing the business.
ANS added: “The prevailing trend of decreasing reserve size opportunities and escalating cost base translates to further challenges to transform discovery opportunities into viable commercial developments.”
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