Pioneer Natural Resources Co. agreed to sell its oil and gas operations in Argentina to Apache Corp. for $675 million.
Production from the Argentine assets was 32,500 boe/d during 2005. As of Jan. 1, the properties’ net proved reserves were estimated to be 101 million boe.
Much of the transaction involves nonoperated properties subject to preferential rights to purchase by existing owners. Apache said it will provide details about the properties after closing.
The transaction, expected to close by early second quarter, broadens Pioneer’s previously announced plan to divest its nonoperated Tierra del Fuego assets in southern Argentina, Pioneer said in a news release. The agreement is subject to customary closing conditions.
Apace Pres. and Chief Executive Officer G. Steven Farris said, “This acquisition is Apache’s first real step in expanding our operations in Argentina.” Most of the operated properties being acquired are in the Neuquen basin, where Apache already is active.
Pioneer expects to use proceeds to reduce short-term debt. ✦