As it shuffles its portfolio, Houston-based Apache Corp. said it would auction 32 blocks in 18 western Gulf of Mexico fields that it acquired earlier this year from BP plc (see Daily GPI, March 19). The sale, said Apache, was part of its efforts to cut assets that don’t meet production or profitability goals.

Apache plans to accept bids until June 20, with transactions completed by July 31. The properties are expected to produce 43 MMcfe this year, generate $74 million of cash flow and have 60 Bcf of proved reserves. The Gulf of Mexico assets added capacity to produce 200 MMcf/d and 19,000 bbl/d, with net proved reserves of 72.2 million bbl.

All of the properties to be sold are concentrated off the Texas coast, near Mustang Island, Matagorda Island, West Cameron and High Island, and Brazos and Galveston. Apache operates 11 of the 18 fields.

Apache agreed to acquire the Gulf Coast assets as well as some fields in the North Sea from BP in January for $1.3 billion The independent took ownership of 113 blocks and 61 fields off Texas and Louisiana in March.

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