Apache announces major contract awards for Julimar development project

Apache announces major contract awards for Julimar development project

PERTH, Western Australia, 3 October 2012. Apache Energy today announced that three major contracts for the Julimar Development Project have been awarded.

Apache Julimar Pty Ltd and KUFPEC Australia (Julimar) Pty Ltd will develop subsea facilities to supply gas from their Julimar and Brunello discoveries (the Julimar Development Project or JDP) into the Wheatstone LNG Project. Apache has a 65-percent interest in the JDP and is the operator. Apache has a 13-percent working interest in the Chevron-operated Wheatstone Project under development at Ashburton North, 12 kilometres west of Onslow in Western Australia. The foundation phase of the project will include two LNG trains with a combined capacity of 8.9 million tons per annum (MTPA) and a domestic gas plant.

The JDP is expected to generate average net sales to Apache of approximately 140 million cubic feet per day (MMcfd) of LNG (equivalent to 1.07 MTPA) at prices pegged to world oil markets, 22 MMcfd of sales gas into the domestic market, and 3,250 barrels of condensate per day. Apache Energy Managing Director Thomas Maher said the three awards, with a total value of approximately AUD$500 million (AUD$325 million net to Apache), represent the largest set of contract awards by Apache Energy and a significant milestone for the Julimar project.

The three awards included:

The Pipelines Transport and Installation contract awarded to Allseas Construction Contractors Australia. The scope of work covers the supply of transportation and installation services for the Julimar development pipeline field components, including the 25km long, twin 18" corrosion resistant alloy (CRA) pipelines, the 4" carbon steel utility pipe line and ancillary pipe line equipment.

The Subsea Equipment Transport and Installation contract awarded to Subsea 7 Australia Contracting Pty Ltd. The scope of work covers the supply of transportation and installation services for the JDP subsea field equipment including the production manifolds, spools, jumpers and the 25km-long subsea electro-hydraulic umbilical.

Construction and supply of a 25km-long Subsea Electro-Hydraulic Umbilical awarded to Oceaneering International Services Limited.

Mr Maher said the value of the contracts were within budgetary expectations and represented the final significant subsea contracts to be awarded for the Julimar Development Project.

About Apache Energy Apache Energy Limited is the Australian operating subsidiary of Apache Corporation, a US listed independent energy company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids. Apache is the second largest producer of natural gas for Western Australia's domestic market and third largest oil producer in Australia.

Media contact David Parker, Apache Government and Public Affairs, Perth: +61 8 6218 7460

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