• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 33 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 6 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 2 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 11 hours Middle East on brink: Oil tankers attacked off Oman
  • 4 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 5 hours Never Knew Gasoline Prices were this important!
  • 19 hours Middle East Attack Jolts Oil-Import Dependent Asia
  • 2 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 22 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 21 hours Emmissions up, renewables nowhere
  • 24 hours The Cards Are On The Table: China Willing To Meet Reasonable Rare Earth Demand From Other Countries
  • 22 hours Canada Issues Updated NGV Roadmap
  • 22 hours Only one country is contemplating destroying its own resource sector: Canada
Is Now A Good Time To Buy Energy Stocks?

Is Now A Good Time To Buy Energy Stocks?

Two bearish factors are weighing…

U.S. Wind Farm Developers Brace For Trade War Fallout

U.S. Wind Farm Developers Brace For Trade War Fallout

U.S. wind power developers brace…

Apache Shifts Oil Focus to North America

As Kenya prepares to pump its first crude and investors can hardly get enough of this East African hotspot, US-based Apache Corp. has announced it will be divesting its acreage there.
Apache is giving up its 50% share in Kenya’s offshore Block L8, which it is exploring along with British Tullow Oil Plc—the company whose first major find last year put Kenya on the oil map—and Australia’s Pancontinental.

Drilling in the block has showed only non-commercial quantities of gas so far, and this is Apache’s single holding in Kenya, while the company plans to focus on more lucrative opportunities elsewhere.

For Apache, it’s about global portfolio rebalancing and a shift in focus more towards its core growth assets in North America, such as the Texas Permian Basin, where it holds 1.6 million net acres, and the Oklahoma Anadarko Basin.

Related article: From Peak Oil to Fossil Fuel Euphoria

The goal is to sell off non-core assets swiftly in order to pay down debt and fund North American onshore liquids drilling programs.

So far this year, Apache has raised some $7 billion in asset sales and monetizations. Globally, these sales have included assets in Egypt which went to China’s Sinopec, assets in Canada and in the Gulf of Mexico. The end result is to make Apache’s North American assets more productive and valuable.

Apache plans to spend some $4 billion of its total $10.5 billion annual capital expenditure on developing its onshore US assets, where production is already up.  

This represents a shift in strategy with growing confidence in North American production, and while media questioned the timing of Apache’s announcement that it was pulling out of Kenya around the time of a terrorist attack on a shopping mall in Nairobi, the company denies any connection to this and it is unlikely that the two events are related.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News