North Sea production reaches two-year high at Apache

US oil firm Apache achieved its best quarterly production figure in the UK North Sea in two years during the first three months of 2019.

Apache produced 66,000 barrels of oil equivalent per day from the basin in the first quarter, 21% more than in the same period in 2018.

The company attributed its strong performance to a full quarter of output from Garten, a new development well at Callater and enhanced uptime on its facilities.

First oil from Garten was achieved in November, less than eight months after the initial discovery was made 180 miles north-east of Aberdeen.

Garten, 100% owned by Apache, is tied back to the Beryl Alpha platform and is expected to yield more than 10 million barrels of oil.

Callater, also in the Beryl area, came on stream in May 2017.

Houston-headquartered Apache was also benefitted from a “revamped waterflood program” in the Forties field.

Apache, which also has operation in the US and Egypt, posted first quarter revenues of £1.25 billion, down 6.4% year-on-year, while pre-tax income dropped 57% to £126m.

Chief executive John Christmann said: “2019 is progressing very well. Overall production was strong in the first quarter, and we are demonstrating excellent capital discipline and cost control.

“The North Sea and Egypt continue to deliver robust free cash flow with their leverage to premium Brent crude prices and higher natural gas and NGL netbacks.

“In the Permian, we are poised to deliver attractive oil growth and a substantial cash
flow uplift at Alpine High in the second half of the year.

“We will also be advancing our differential exploration initiatives, most notably in Suriname.

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Craigmill, Pitcaple, Inverurie, Aberdeenshire, United Kingdom, AB51 5HP
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