Deal Insight

Apache acquires interest in Beryl Area for US$1.75 billion

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

21 September 2011

Apache acquires interest in Beryl Area for US$1.75 billion

Report summary

Apache is to acquire a package of UK assets from ExxonMobil for US$1.75 billion. The key interests are a 50% operated interest in the Beryl Area, plus operated interests in surrounding subsea tie-backs. This is a landmark transaction in the European M&A market: the biggest asset deal since 2005, and the largest disposal by any Major to date.Our base case valuation of the deal is US$1.33 billion. However, this number reflects the development plans of the current operator, ExxonMobil. For ...

Table of contents

  • Executive summary
  • Transaction details
    • Beryl Area
    • Nevis South
    • Other interests
    • Upsides
      • Forties lesson 1: Apache has an outstanding track record of delivering organic upside
      • Forties lesson 2: value creation through M&A is a tough game
    • Risks
      • Partner alignment and risk of pre-emption
      • Abandonment liability
      • Focus
    • ExxonMobil perspective
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 9 images and tables including:

  • Executive summary: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Upstream assets: Table 1
  • Wood Mackenzie base production forecasts; 1) acquired portfolio (net to Apache); 2) Beryl (gross field)
  • Forties production: Wood Mackenzie 2003 view vs. current view
  • Wood Mackenzie analysis of value creation through Forties acquisition

What's included

This report contains:

  • Document

    Apache acquires interest in Beryl Area for US$1.75 billion

    PDF 543.36 KB