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Apache selling all of its operations in Argentina to YPF

14th February 2014

Apache Corporation has agreed to sell all of its operations in Argentina to YPF SA for a cash payment

Apache will sell all of its operations in Argentina to YPF(Photo: Map of Argentina)

Apache Corporation has reached an agreement to sell all of its operations in Argentina to Yacimientos Petrolíferos Fiscales(YPF) Sociedad Anonima for a cash payment of USD 800m.

YPF made a USD 50m deposit on the transaction, which is anticipated to be completed in the next 30 days.

G. Steven Farris, Apache’s chairman and chief executive officer said, "Over the past year, Apache has taken decisive steps to focus its portfolio on repeatable and profitable long-term growth in areas where the company has industry-leading positions, such as its deep inventory of liquids-rich drilling opportunities onshore North America and international assets generating large free cash flows. This transaction is consistent with that strategy."  

The transaction completes Apache's realization of more than USD 7bn of cash proceeds from asset sales. Apache plans to use these proceeds towards investing to encourage growth, establishing financial adaptability, reducing debt and repurchasing Apache common shares.

He added that "Apache's employees in Argentina have done an outstanding job finding and developing new reserves and creating commercial opportunities in the region since we entered the country in 2001, and we are grateful for their many contributions."

Apache had estimated the reserves in the country were approximately 540 billion cubic feet of natural gas equivalent. During 2013, Apache's production from Argentina reached about 256 million cubic feet of gas equivalent per day.

Apache Corporation is an oil and gas exploration and production company with offices in the United States, Canada, Egypt, the United Kingdom, Australia and Argentina.

 

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