Apache Corp. and Amerada Hess Corp. have agreed to a land swap, with Apache selling its 55% interest in a deepwater section off of Egypt’s coast for $413 million and Hess selling eight fields in the Permian Basin of West Texas and New Mexico for $404 million.

Six of the Hess fields are operated, and the Egyptian assets are unbooked. The Permian Basin transaction is subject to exercise of preferential rights as well as standard closing requirements. Both of the transactions are expected to close in 1Q2006.

“Apache intends to concentrate and continue its rapid growth in Egypt’s Western Desert,” said Apache CEO G. Steven Farris. “Egypt has been good to us. and we welcome Amerada Hess as a strong and growing company.

“We are also pleased to add to Apache’s present production and position in the Permian Basin. The concurrent sale of our unbooked West Mediterranean reserves enables us to expand and accelerate our production base in the United States,” he added.

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