Oil and gas operator Apache North Sea is planning more than £650million of capital spending in 2012, its boss said yesterday.
The firm’s spending, up £100million-plus from 2011, will include £413million on production, exploration and appraisal well drilling.
It continues a busy period at the firm, which recently took over the Beryl assets in the North Sea; a move that will boost production by 20%, according to region vice-president and managing director Jim House.
He added: “2011 was a busy year. A major part of the spending was on the satellite platform project and then on Bacchus.
“We spent £538million. This year we will exceed $1billion (£652million).”
The satellite platform, for Forties Alpha, due to be completed later this year, will provide 18 well slots to further extend the life of the field.
Bacchus, a subsea development, is currently being drilled using the Rowan Gorilla VII ahead of coming online this year.
Apache’s 2012 budget includes £101million for exploration work – in the central and northern North Sea – including some in proximity to existing Apache infrastructure.
About £28.7million would be spent on acquiring seismic data, while £215million will be spent on other projects, facilities and asset integrity, said Mr House.
As part of its acquisition of the Beryl field and other assets, the firm shuffled a number of its staff between its Dyce and city-centre offices over the weekend to reform working groups.
According to Mr House, the acquisition of the field will increase production 20% from nearly 54,000 barrels of oil equivalent (boe) per day in 2011.
Together with a 3% projected increase in production from Forties, the addition of the Bacchus field and increases in production at other non-operated assets, he said 2012 production would be about 93,000 boe: a 69% increase overall.
The firm has also recently applied to the Department of Energy and Climate Change to instal a replacement pipeline between its Forties Delta and Charlie platforms due to complications on a flexible pipe previously installed.