Freeport-McMoRan to buy deepwater gulf assets for $1.4 billion

Freeport-McMoRan Oil & Gas LLC, a subsidiary of Freeport-McMoRan Copper & Gold Inc., has entered into a definitive purchase and sale agreement with Apache Corp. to acquire certain interests in the deepwater Gulf of Mexico, including interests in the Lucius and Heidelberg oil production development projects and 11 exploration leases, for $1.4 billion, effective May 1.

Freeport McMoRan O&G said the acquisition will be funded with proceeds from the sale reported on May 7 of its Eagle Ford shale assets to Encana Oil & Gas Inc. for $3.1 billion (OGJ Online, May 7, 2014).

The gulf assets, including Apache’s 11.7% interests in the Lucius and 12.5% interest in Heidelberg oil production development projects, have estimated proved, probable, and possible reserves of 55 million boe and several hundred million boe resource potential, Freeport-McMoRan O&G said.

The Lucius unit includes Keathley Canyon Blocks 874, 875, 918, and, 919. Freeport-McMoRan O&G will own 5% working interest in development, which the company said is on track to commence production in the second half of the year.

The hull fabrication for the 80,000-boe/d Lucius-look-alike facility is more than 85% complete and the spar is expected to be towed to the gulf later this year, Freeport McMoRan O&G said. Topsides fabrication is currently more than 25% complete.

The Heidelberg unit, a large, high-quality oil development project in 5,000 ft of water in the Green Canyon area, includes Green Canyon Blocks 859, 903, 904, and 948. It’s operated by Anadarko Petroleum Corp. and is expected to commence production in mid-2016.

The 11 exploration leases to be acquired include Apache’s interests in the Lucius Offset, Capri, and Silver Fox/Parmer exploration areas with working interests ranging from 16.67% to 60%. The transaction is expected to close by the end of the second quarter.

Related Articles

Sinopec, FTSI form JV to tap China’s unconventional resources

06/11/2014 Sinopec Group has entered into a 15-year joint venture agreement with FTS International (FTSI), Ft. Worth, with the intention of tapping into the C...

Opposing groups want SEC to write new foreign payment rules

06/11/2014 The US Securities and Exchange Commission should move quickly to write new disclosure requirements for publicly traded US oil, gas, and mining comp...

ConocoPhillips, Suncor join Shell in deepwater exploration off Nova Scotia

06/11/2014

ConocoPhillips and Suncor Energy Inc. are joining Shell Canada as partners in exploring the deepwater Shelburne basin off Nova Scotia.

Osum to purchase Orion project from Shell for $325 million (Can.)

06/11/2014

Osum Oil Sands Corp., Calgary, plans to purchase the Orion oil sands project in Alberta from Shell Canada for $325 million (Can.).

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected