FERC on Monday approved a joint request for temporary waivers of certain agency regulations to facilitate the $3.75 billion sale of Apache Corp. Gulf of Mexico assets to Fieldwood Energy LLC.

The petitioners requested, and were granted, temporary waivers of Federal Energy Regulatory Commission (FERC) capacity release regulations and certain other FERC policies for the limited purpose of facilitating a permanent prearranged capacity release as part of an agreement to sell. The companies had asked that the waivers remain in effect until the earlier of 90 days following the date that the asset purchase transaction closes (Sept. 30), or the date the capacity release transaction and assignments are completed.

Apache and Houston-based Fieldwood sought waivers of the prohibition of tying arrangements, shipper-must-have-title policy prohibition against buy-sell arrangements, and posting and bidding provisions as set forth in the tariffs of the affected pipelines.

“The Commission will grant temporary, limited waiver of its capacity release regulations…as well as the posting and bidding provisions set forth in the affected pipelines’ tariffs for the limited purposes of facilitating a permanent prearranged capacity release as part of Apache’s agreement to sell its production assets to Fieldwood. Granting these waivers will allow the petitioners to execute their purchase and sales agreement and transfer the assets in an orderly and efficient manner. It will also ensure uninterrupted access to natural gas in the Gulf of Mexico shelf,” according to the FERC order [RP13-1197].

Fieldwood is paying $3.75 billion cash for the assets, and it agreed to assume all of the asset retirement obligations for the properties, which, as of June 30, were estimated by Apache at a discounted value of about $1.5 billion.

Apache’s Shelf portfolio, considered the largest-operated asset base in GOM waters up to 1,000-feet deep, comprises more than 500 blocks with 1.9 million net acres. At the end of 2012, estimated proved reserves from the shelf were 133 million bbl of oil and natural gas liquids, along with 636 Bcf of natural gas.

In the first three months of this year, the offshore properties being sold averaged net production of about 50,000 b/d of liquids and 254 MMcf/d of gas.

“This transaction is an important step toward rebalancing our portfolio,” Apache CEO G. Steven Farris said in mid-July, when the sale was announced (see Daily GPI, July 19). “At the end of this process, we expect Apache to have the right mix of assets to generate strong returns, drive more predictable production growth and create shareholder value.”

Apache plans to retain its half-stake in all of the exploration blocks and the horizons below production in the developed blocks, where high-potential deep hydrocarbon plays are being tested.

The explorer plans to use the sales proceeds to reduce debt and enhance financial flexibility, which was the primary reason it announced plans in May to cast off a chunk of its portfolio (see Daily GPI, May 10). The effective date of the transaction, set to close by the end of September, was July 1.