North Sea operator Apache has sold off its Argentine assets in a £480million deal as it looks to cut debts.
The sale, to state run firm YPF – the latest in a $7billion divestment programme – came as the company saw fourth quarter profits slide 73% on 2012.
Apache posted net profits of £104million ($174million) for the quarter as weather conditions in the US disrupted output in the mid and southern US states.
Total output fell from more than 800,000 barrels of oil equivalent a day last year to 688,000 this year.
The company, which saw its North Sea spend drop by $12million to $874million last year, saw overall production from the region stable at 63,721 barrels of oil equivalent per day, though gas volumes – up in the final quarter – declined overall from 57,457Mcf in 2012 to 50,961 this year.
The latest sell-off, which comes after a rapid sale of assets including the company’s Gulf of Mexico operations last year, sees Apache disposing of reserves of 540billion cubic feet of gas and 256million cubic feet a day of production from its Argentina base.
“Over the past year, Apache has taken steps to focus its portfolio on repeatable and profitable long-term growth in areas where the company has industry-leading positions,” said chief executive Steven Farris. “This transaction is consistent with that strategy.”
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