Apache has reported a quarterly loss of $5.7billion as it took a writedown due to the decline in oil prices. Despite the losses, the company has increased its production forecast for the year. Increased efficiencies, a drop in service costs and low break-even levels in core US shale fields have helped companies increase production even as they scale back spending.
Apache’s further oil discoveries in the North Sea are a real “morale boost” for the sector, according to the chief executive of Oil & Gas UK. Deirdre Michie spoke to Energy Voice on the back of last month’s announcement of up to 70million barrels of recoverable oil in the North Sea. US-based Apache Corporation announced finds on two exploration wells in the Beryl area and a “large” discovery at its Seagull prospect about 50 miles south of its huge Forties Field.
The Scottish Government said new discoveries made by Apache in the UKCS could bring more investment, jobs and supply chain opportunities for the North Sea oil and gas industry. Last month the US explorer said it had made significant discoveries in the North Sea in both the Beryl and Forties field which could hold up to 70million barrels of oil equivalent. Apache also said two discoveries were made on two exploration wells in the Beryl area as well as further discovery 50 miles south of the company’s Forties field.
Energy Voice looks back through the archives to chart the evolution of the Forties Field, which began pumping oil 40 years ago.
Industry body Oil & Gas UK said the announcement by US oil explorer Apache of significant discoveries in the UKCS was proof of the value of continued investment in seismic technology.
Operator Apache has exercised the first of two options to extend its existing contract with Archer for the provision of platform drilling services for another year.
Lower oil prices have blown a £100million-plus “impairment” hole in Apache North Sea (ANS)’s latest accounts.
US stocks declined for the fourth time in five sessions, as results from Viacom Inc. and Twenty-First Century Fox Inc. disappointed while energy shares fell with oil. Viacom and Fox slumped at least 10 percent after joining a parade of media companies reporting disappointing results. Keurig Green Mountain Inc. plunged 30 percent after cutting its sales and profit forecasts. Marathon Oil Corp. and Apache Corp. sank at least 1.4 percent. Michael Kors Holdings Ltd. added 12 percent after posting better-than-estimated results. The Standard & Poor’s 500 Index lost 0.4 percent to 2,092.34 at 9:59 a.m. in New York, after adding 0.3 percent on Wednesday. The Dow Jones Industrial Average fell 92.40 points, or 0.5 percent, to 17,448.07. The Nasdaq Composite Index also decreased 0.5 percent.
Apache has reported a loss of $5.6billion in its second quarter results. The company said the figure includes an after-tax ceiling test write down of $3.7billion resulting from low commodity-price levels and $1.9billion of other items. Apache said despite the losses it expects to increase its production guidance for 2015.
Paradigm Flow Services has completed a deluge remediation and replacement project in the Forties field for Apache North Sea. The company finished the work as part of its service on four of the Forties assets. The team has been undertaking a variety of work to ensure the lifetime of the system including valve replacement work, cleaning drains and parts and then testing the system with air and water. Paradigm also completed hydraulic modelling to verify that all changes were accurately captured.
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An investigation is underway after a gas leak on a North Sea platform. Production was temporarily shut down on the Beryl Alpha platform around 200 miles from Aberdeen after the incident earlier this month. Operator Apache said the leak was suspected to have come from a flow transmitter on one of its wells.
Apache has begun oil production from the Coniston subsea oil field development offshore Western Australia. The company's partner INPEX provided the update on the Coniston field, which is being produced by an FPSO (floating production, storage and offloading vessel) which operates on the Van Gogh oil field.
Apache has awarded a subsea distribution unit supply contract to SEA. Under the agreement, the company’s subsidiary J+S will provide subsea distribution units and associated equipment and services for Apache’s Ness Nevis project. Apache is currently undertaking a development program to upgrade the subsea controls architecture in preparation for new wells at the Beryl Field area.
Apache have contracted a semi-submersible rig from Diamond Offshore to drill the Levitt-1 exploration well in the northern Carnarvon Basin. Karoon Gas Australia said it had been advised by the operator of the move which will see the Ocean America rig used to drill in the exploration permit WA-484-P. The Levitt-1 exploration well is expected to spud during May 2015.
Stork has been awarded a three-year contract extension with two one-year extension options from Apache. The company will provide a range of integrated fabric maintenance support services including scaffolding, insulation, coatings, passive fire protection, deck support, environmental and decontamination and rope access. The initial contract was awarded to Stork in 2009 and has now been extended until 2017.
Apache North Sea boss Jim House insists the UK oil and gas industry still has a bright future but he has also joined the growing clamour for Chancellor George Osborne to usher in new tax breaks. Mr House, region vice-president and managing director at Apache North Sea (ANS), told the Press and Journal yesterday there was “no better time” than now to radically overhaul a fiscal regime which was not helping oil and gas firms. The current system is not fit for purpose, he said, adding that the industry itself also needed to change following the sharp slump in oil prices.
US oil firm Apache expects to spend between £900million and £1.1billion “internationally and offshore” during 2015, compared with £1.8billion last year,results revealed yesterday. Houston-based Apache – one of the UK North Sea’s leading operators – reported fourth quarter net losses of £3.1billion, compared with profits of £113million a year earlier.
The UK energy sector’s attempts to pull itself out of the mire are being hindered by a lack of collaboration, urgency, and boldness, industry leaders said at Europe’s largest subsea event yesterday.
The chief executive of Apache will collect $11.9million in salary and bonus as part of his retirement package. Steve Farris, who announced his retirement last week, will continue in a consulting role with the company. During this period he will collect his $1.75million salary as well as two bonus payments of $2.6million and a lump sum of $1.4million.
Apache has confirmed the retirement of its chief executive. Steven Farris said he would step down from his role but continue as non-executive chairman of the board until May 1, 2015. Mr Farris joined the firm in 1988 and has served as its chief executive officer since 2002 and as chairman of the board since 2009.
Energy services firm Bilfinger Salamis UK has secured new business with a combined total value of more than £100million. The company has been awarded the contracts from clients including Apache and Taqa Bratani in the last three months. The services to be provided include offshore inspection enactment including conventional and advanced NDT,scaffolding access and rope access.
Apache has started to make redundancies from its operations across the globe. It has become the latest oil company to make job cuts, with BP also announcing it would be axing 200 office-based roles and 100 contractors from its North Sea operations.
Apache has cut its contractor rates by 10% according to reports. The move comes just a day after WGPSN revealed it would be making 10% cuts to its contractor rates, as well as freezing salaries from January. It follows a previous 10% cut for UK-based onshore contract workers in May.
Apache has appointed a new board member. Peter Ragauss joins the company after eight years as senior vice president and chief financial officer of Baker Hughes.