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Released March 01, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Apache Corporation (NYSE:APA) (Houston, Texas) is notching up its production outlook for 2019, while cutting its capital spending when compared with 2018, following a year in which the company saw an 18% increase in production from the Permian Basin and the creation of a subsidiary to focus on the region. Industrial Info is tracking nearly $1.5 billion in active projects involving Apache, the bulk of which are found in the Permian.
Apache's 2019 capital budget for upstream projects stands at $2.4 billion, a 22% drop from 2018, while its production guidance is rising to between 425,000 and 440,000 barrels of oil equivalent per day, from a previous range of 410,000 to 440,000 barrels. Apache said in an earnings-related press release that 2019's growth will be driven by U.S. assets, which will receive about 75% of total upstream investment.
Despite an unplanned field-wide shut-in at Apache's Alpine High development in the Permian Basin of Texas in the fourth quarter of 2018, the company brought 26 wells online during the same period and averaged 70,000 barrels of oil equivalent per day from the development. Apache discovered the bountiful oil reserve in 2016 and has since invested extensively in the area, estimating 75 trillion cubic feet of rich gas and 3 billion barrels of oil in and around the town of Balmorhea, according to a local Fox affiliate.
Click on the image at right for a map detailing locations for Apache's active projects in the Permian Basin.
Balmorhea is home to Apache's multi-phase Diamond Natural Gas Cryogenic Processing Plant, which comprises three trains under construction and set to be completed this year: the $160 million first train, which is expected to wrap up in the second quarter, and the $160 million second train and $160 million third train, both of are set to wrap up in the third quarter. Each is expected to process 200 million standard cubic feet per day of natural gas from the Permian's Delaware Basin. For more information, see Industrial Info's reports on the first, second and third trains.
Later this year, Apache plans to begin construction on fourth and fifth trains, each valued at $160 million, which would have the same capacities and bring full facility's production to 1 billion cubic feet per day. Completions are expected in the first and second quarter of 2020, respectively. For more information, see Industrial Info's project reports on the fourth and fifth trains.
Apache is planning to support this growth with the construction of 15 compressor stations, each valued at $5 million. The first station, which is to be built in Fort Davis, Texas, is set to finish construction in the coming weeks after kicking off in September. For more information, see Industrial Info's project report for the first station.
Last quarter, Apache created Altus Midstream Company to fund ongoing planned midstream investments at Alpine High, while retaining a majority stake and operational control.
John J. Christmann, the chief executive officer of Apache, said in a press release that the company also increased its production in the North Sea in 2018 to its highest level in two years. Among the company's long-term plans in the area is the Storr oil and gas development in the Beryl Field, northeast of Scotland. Apache's North Sea subsidiary is proposing an estimated $12.7 million crude oil-production well, which will be tied to the company's Beryl Alpha platform via a $99.3 million subsea pipeline and a $46.4 million in subsea equipment.
The full Storr project is in its early phases, where plenty of factors could change or eliminate projected spending. For more information, see Industrial Info's project reports on the oil well, pipeline and subsea equipment.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Apache's 2019 capital budget for upstream projects stands at $2.4 billion, a 22% drop from 2018, while its production guidance is rising to between 425,000 and 440,000 barrels of oil equivalent per day, from a previous range of 410,000 to 440,000 barrels. Apache said in an earnings-related press release that 2019's growth will be driven by U.S. assets, which will receive about 75% of total upstream investment.
Despite an unplanned field-wide shut-in at Apache's Alpine High development in the Permian Basin of Texas in the fourth quarter of 2018, the company brought 26 wells online during the same period and averaged 70,000 barrels of oil equivalent per day from the development. Apache discovered the bountiful oil reserve in 2016 and has since invested extensively in the area, estimating 75 trillion cubic feet of rich gas and 3 billion barrels of oil in and around the town of Balmorhea, according to a local Fox affiliate.
Click on the image at right for a map detailing locations for Apache's active projects in the Permian Basin.Balmorhea is home to Apache's multi-phase Diamond Natural Gas Cryogenic Processing Plant, which comprises three trains under construction and set to be completed this year: the $160 million first train, which is expected to wrap up in the second quarter, and the $160 million second train and $160 million third train, both of are set to wrap up in the third quarter. Each is expected to process 200 million standard cubic feet per day of natural gas from the Permian's Delaware Basin. For more information, see Industrial Info's reports on the first, second and third trains.
Later this year, Apache plans to begin construction on fourth and fifth trains, each valued at $160 million, which would have the same capacities and bring full facility's production to 1 billion cubic feet per day. Completions are expected in the first and second quarter of 2020, respectively. For more information, see Industrial Info's project reports on the fourth and fifth trains.
Apache is planning to support this growth with the construction of 15 compressor stations, each valued at $5 million. The first station, which is to be built in Fort Davis, Texas, is set to finish construction in the coming weeks after kicking off in September. For more information, see Industrial Info's project report for the first station.
Last quarter, Apache created Altus Midstream Company to fund ongoing planned midstream investments at Alpine High, while retaining a majority stake and operational control.
John J. Christmann, the chief executive officer of Apache, said in a press release that the company also increased its production in the North Sea in 2018 to its highest level in two years. Among the company's long-term plans in the area is the Storr oil and gas development in the Beryl Field, northeast of Scotland. Apache's North Sea subsidiary is proposing an estimated $12.7 million crude oil-production well, which will be tied to the company's Beryl Alpha platform via a $99.3 million subsea pipeline and a $46.4 million in subsea equipment.
The full Storr project is in its early phases, where plenty of factors could change or eliminate projected spending. For more information, see Industrial Info's project reports on the oil well, pipeline and subsea equipment.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
