Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Apache’s latest figures reveal another big write-down

Apache news
Apache news

Lower oil prices have blown a £100million-plus “impairment” hole in Apache North Sea (ANS)’s latest accounts.

The one-off write-down in the oil producer’s 2014 figures comes after a review of the value of its assets.

It follows an even bigger write-down on holdings revealed a year ago, when 2013 results highlighted a £374million hit.

The smaller write-off in the latest period meant operating profits rose by 98% to £135million despite a 20% drop in turnover to £1billion, and pre-tax profits were up 58% at £116million.

Without the impairment charges, operating profits slumped by 46% as plunging crude oil prices knocked revenue.

Production was also down, with ANS reporting 16.7million barrels of oil equivalent last year after pumping 18.2million in 2013.

The latest accounts also highlighted the spiralling costs faced by North sea producers in 2014 – before oil prices nose-dived and forced firms to find cheaper ways of doing business.

ANS said: “During 2014 the lifting cost per barrel increased by 20%, driven by higher exchange costs as well as an increase in underlying costs such as labour, fuel, materials and lower production volumes.”

Houston-based Apache, which this year celebrates the 40th anniversary of production from its North Sea Forties field, invested more than £500million in the UK business last year despite the oil price slump.

ANS highlighted its 18 development wells drilled in the Forties area and continued investment in infrastructure.

It also commissioned the new Forties Alpha satellite platform (FASP) in the third quarter in order to exploit new opportunities in the area.

The new facility provides an extra 18 drilling slots and power generation, fluid separation and gas lift compression.

ANS, which sold stake sin the Val D’Isere, Les Arcs and Seagull fields in 2014, said it was investing a further £166million in a “diverse set of capital projects” this year.

It added: “Forties will gradually reduce its drilling in 2015 from three platform rigs at the start of the year down to a single platform string, but will continue to have a jack-up in operation drilling both exploration opportunities and ongoing FASP wells.”

Apache entered the North Sea through its £401million acquisition of Forties from BP in 2003.

In June, Cory Loegering took over as the new head of ANS as region vice-president. His predecessor in the role, Jim House, is now senior vice-president for Apache’s operations in the Houston area.

Recommended for you

More from Energy Voice

Latest Posts