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Apache starts producing Van Gogh off W. Australia

By OGJ editors
HOUSTON, Feb. 16
-- Apache Corp., Houston, started production from the Van Gogh development on Production License WA-35-L in the Exmouth basin off Western Australia.

Van Gogh, discovered in 2003, is Apache's first field development with a floating production, storage, and offloading vessel. The wells are completed subsea and include 19 horizontal production laterals, 2 water injection wells, and 1 gas injection well.

Apache said the total horizontal interval drilled for all of the production wells exceeds 106,000 ft.

The Ningaloo Vision FPSO has capacity to process 150,000 b/d of liquids, including 63,000 bo/d, and store 540,000 bbl of oil.

Van Gogh is 32 miles north-northwest of Exmouth.

Apache is the operator of Van Gogh and has a 52.5% interest. Inpex Australia holds the remaining interest.

Apache also operates or has an interest in several other projects in Western Australia.

Apache holds a 28.57% interest in the BHP Billiton Petroleum Ltd. operated $1.7 billion Pyrenees project, scheduled to start producing in this year’s second half. The project includes the Crosby, Ravensworth, and Stickle oil fields, which lie in 560-820 ft of water on Block WA-12-R in the Exmouth basin (OGJ Online, July 3, 2007). BHP Billiton holds the remaining 71.43% interest in the Pyrenees development.

In 2011, Apache expects to start production from its operated Reindeer field through the Devil Creek processing plant—Western Australia's first new domestic natural gas processing hub in Western Australia in more than 15 years. Apache said Devil Creek is forecast to increase Western Australia's domestic gas production capacity by as much as 20%. Apache holds 55% interest in Reindeer with the remaining interest held by Santos Ltd.

Apache also will supply gas from its Julimar and Brunello discoveries to Chevron Corp.’s Wheatstone LNG project and become a foundation equity partner in the project. Apache said the fields contain an estimated 2.1 tcf of gross gas reserves. Apache holds a 65% interest in the discoveries and plans to make a final investment decision on the first phase of Wheatstone in 2011. Kuwait Foreign Petroleum Exploration Co. owns the remaining 35%.

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