Apache to Develop Macedon Field Offshore Western Australia


Apache Corporation said today that it will proceed with development of the Macedon gas field in the Exmouth Basin in Western Australia.

The project will commercialize natural gas from offshore production license WA-42-L, located 60 miles (100 km) west of Onslow. First production is expected during 2013. Apache has a 28.57-percent interest and its share of the estimated $1.5 billion cost is approximately $430 million. BHP Billiton owns the remaining interest and will operate the project.

Four offshore production wells will supply gas to an onshore gas processing plant with a capacity of 200 million cubic feet of gas per day. After gas is processed at the facility, which will be located at Ashburton North, 11 miles (17 km) southwest of Onslow, it will be sent via sales pipeline to the Dampier to Bunbury Natural Gas Pipeline for sale in Western Australia’s domestic gas market.

“By introducing a new source of gas and a new processing hub, the Macedon development will provide much-needed gas to meet rising demand and increase the diversity of supply for Western Australia’s growing resource-based economy,” said Rodney J. Eichler, Apache’s co-chief operating officer and president – International.

Apache’s Varanus Island processing and transportation hub currently supplies approximately one-third of Western Australia’s domestic gas needs. The Devil Creek project, now under construction approximately 25 miles (40 km) southwest of Dampier, will process gas from Apache’s Reindeer field with first production expected in the second half of 2011.

Apache also is a foundation partner in the Chevron-operated Wheatstone liquefied natural gas (LNG) hub, which will provide gas from the company’s Julimar and Brunello discoveries for export to growing Asian markets. A final investment decision on the first phase of the Wheatstone project is slated for 2011, after completion of front-end engineering and design.

In addition to these gas projects, Apache commenced production from its operated Van Gogh and BHP Billiton-operated Pyrenees offshore oil developments in February 2010.

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

Source: ApacheCorp,September 24, 2010,

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