Apache Corporation, the US energy company, said on Tuesday it had agreed to buy the Egyptian oil and gas assets of Repsol YPF, the Spanish oil group, in a deal valued at $410m, according to a report by Financial Times, published by Oil and Gas journal on line.
Repsol's properties include interests in seven Western Desert concessions, in six of which Apache already holds a stake.
Raymond Plank, Apache chief executive and chairman, was quoted by the Financial Times as saying the debt-funded deal would allow it to increase its net production by 75 percent and add to earnings and cash flow.
“We have done larger transactions over the last 3-4 years, but this ranks up there with the potential of one of the more strategic ones we've done," said G. Steven Farris, Apache's president and chief operating officer, in a telephone conference with financial analysts, according to the journal.
"It really does solidify our position in Egypt. It makes us the No. 1 liquids producer in the western desert, and No. 3 in Egypt overall," he said
The acquisition will also make Apache the second largest producer of natural gas in the Western Desert. The company expects to pay off the debts quickly from the increased cash flow generated, according to the reports.
Apache Corporation is a large gas and oil independent with operations in the United States, Canada, Egypt, Western Australia, Poland and China -- Albawaba.com
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