Apache Corp. reported that it will cooperate with Sinopec International Petroleum Exploration & Production Corp. to continue its oil and gas projects. China's Sinopec was 33% in Apache's Egypt oil and gas business and will pay the Houston $3.1 billion cash.

 

Apache developed 18% of its 9.7 million gross acres in Egypt. And the production from the land averaged 100,000b/d oil and 354MMcfd natural gas. Which contributed 27% to the company's worldwide production revenue, 20% of its production, and 10% of its yearend 2012 proved reserves.

 

For Sinopec, this is the first venture for the company to entering into Egypt's market and the cooperation can add 130,000boe/d to supply for the company, the company said.

 

Apache said it employs 9,000 Egyptians by means of participating in Khalda Petroleum Co. and Qarun Petroleum Co. operating joint ventures with Egyptian General Petroleum Corp., and also by contracting with oil field service and construction.

 

Apche stated that the political events in the region don’t affect the operation of the company due to it locates in remote, unpopulated areas.

 

Apache recently made seven oil and gas discoveries in Egypt's Western Desert—four in the Faghur basin, one in the Shushan, one in Matruh, and one in Abu Gharadig basins.

 

Through statement of G. Steven Farris, Apache chairman and chief executive officer of Apache, he is conted with the cooperation because the combination of Chinese technical knowledge and Apache's 20 year's of operation experience in Egypt's Western Desert is an ideal partner.

 

Apache's operations in Egypt have been contributing the growth and cash flow many years. Farris noted.” At the same time, we are doing meaningful steps by delivering the resources in the North America onshore.

 

This latest deal is part of Apache's previously announced plan to divest $4 billion in assets by yearend. The company intends to pay down debt, buy back stock under a 30-million share-repurchase program, and fund future international projects.

 

The Egypt cooperation is got the government approvals, and is expected to end at an effective date of Jan.1, during the fourth quarter of the Year. Apache said.