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Certain statements in this presentation may contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation’s (Apache) current expectations, estimates and projections about the company, its industry, its management’s beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases.
Because such statements involve risks and uncertainties, Apache’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache uses certain terms in this presentation, such as “BO resource,” “BO Potential” and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. “BO Resource,” “BO Potential” and other such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and amendments thereto, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov
FORWARD LOOKING STATEMENTS
Apache North Sea
The Projects Group
Recent Projects
Benchmarking
The Portfolio
The Plan
Contracting with Apache
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AGENDA
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APACHE NORTH SEA REGION
Our Vision
To be the premier exploration and production company in the North Sea
Our Mission
Grow value and deliver maximum economic recovery from our assets in an innovative, safe, environmentally responsible and profitable manner for the benefit of our shareholders
Our Strategy
Deliver top-tier returns by maximizing economic recovery through a balanced approach to our operations focused on continuous improvement in all facets of our business
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01234
OGA significant offshore discoveries listing
2012-2016
No
. of
dis
cove
ries
EXPLORATION SUCCESS
PROJECTS GROUP MISSION AND CULTURE
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Mission
The mission of the Projects Group is to provide ApacheNorth Sea with safe world class project delivery in order tomaximize the return on investment for the Corporation.
Pace, Innovation and Excellence
Unity of effort, focus and momentum. Empoweringindividuals to use their own discretion and initiative withinthe implementation process and delivery through MissionCommand Project Management
MISSION COMMAND PROJECT MANAGEMENT
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Mission Command Project Management is a projectmanagement philosophy, with centralised intent anddecentralised execution, that is particularly suitable for fast-track, complex and dynamic projects. It demands anapproach that promotes freedom of action and initiativewithin the bounds of competence. Mission CommandProject Management focuses on project benefits, as itstresses the importance of understanding what effect is tobe achieved, rather than specifying the ways by which itshould be achieved.
MISSION COMMAND PRINCIPLES
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The principles of Mission Command Project Management:
Leadership
Sense of urgency
Competence and capability
Devolved decision making
Responsibility, accountability, authority and autonomy
Collaboration
Respect, integrity and trust
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identity
process and control
quick reference
stage summaries
How to...
CP1 CP2 CP3 CP4 CP5 CP6
PROJECTS DELIVERY MANUAL
100 - General philosophy and approach 200 - Broader Project Management Topics 300 - Specific methods and tools
PROJECT MANAGEMENT PROCESSES
Check Point Process
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Network-Centric Eco-System
Cost
Compliance
Competence
Traditional Selection
CostCompetence
Compliance
Culture
Collaborative Selection
SUPPLY CHAIN MANAGEMENT
Contractor Collaboration
Old Hierarchical Structures
CONTRACTING METHODOLOGY
19 -
Key Point Indicators(KPI’s)
Value Creation
Trust
Zero
Penalties
Lump Sum
Confrontational
Zero
Strategic alignment
Target Cost
Collaborative Working
Co-creating
RelativeAbsolute
SimplisticSignificant number of KPIs
Cost Plus
Co-operative
Compliant
FNT OIL TIE-BACK TO BERYL BRAVO
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Single Development Well Tie-in
FNT additional Slot Manifold, Subsea
Controls and Jumpers
Control System HDU, TUTU, MCS and
Delta V
3.8km 8” Flexible Pipeline Rock
Dumped and Matted
4.3km 8” Flexible Pipeline Rock
Dumped and Matted
ESDV, Hook-up to Subsea Manifold
4.5km Electro-Hydraulic
Umbilical Rock Dumped and Matted
AVIAT FUEL GAS TIE-BACK TO FA
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24km Electro-Hydraulic
Umbilical Trenched, Buried and Matted
Subsea Isolation Valves Manifold and
Controls
Metering and Compression, Slugcatcher
Control System HDU, TUTU, MCS and
Delta V
Risers and Umbilical Under-deck
Structures and ESDV
6” Flexible Riser, Bellmouth to
Existing Risers
Meg Storage, Injection, Pumps and
Compressors
23km 8” Rigid Pipeline Trenched, Buried and Matted
Single Development Well Tie-in
Aviat 4 Slot Manifold, Subsea
Controls and Jumpers
Gas Heater & Compressor KO
Drums
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Subsea Isolation Valves Manifold and
Controls
Control System HDU, TUTU, MCS and
Delta V
Bacchus Riser Caisson Under-deck Structures and ESDV
6.7km Bundle2 x 6” Production2 x 4” WI/Heating
4” Gas Lift3” Scale Squeeze
HydraulicsElectricsChemical
4 Slot Manifold, Subsea Controls and
Jumpers
BACCHUS OIL TIE-BACK TO FORTIES ALPHA
Metering and Tie-into Production,
Water Injection and Gas Lift
FORTIES ALPHA SATELLITE PLATFORM
18 Gas Lifted Wells
Gas Dehydration & Compression
Local Equipment Room
Lifeboat
Crane
Separation
Water Polishing & Sand Removal
Export Pumps
Power Generation, Switchboards & Transformers
Total weight 18,460 tonnes
Topsides 44m x 40m x 17m
Bridge 92m x 6m x 5m
Jacket height 129m
Piles 12 x 2.4m dia. x 100m
CALLATER TIE-BACK TO BA
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Chemicals and hydraulics via
Skene
13km umbilical – Electrical
power & signal
Process and export via BA
system
Production via BA bridge pipework
3.85 km Bundle14” & 8” pipelines
Tie-in Towhead(Future tie-ins)
6 slot manifold (Expansion & future tie-ins)
Production via existing Skene
bundle
Production through existing
caisson
Tie-in toSkene South
Bundle Manifold
Topsides structures and new flowlines
Piping, E&I, controls, F&G modifications
Separator upgrades
Subsea controls system
Structural Access
and Support Platforms
14” and 8” Flowlines
147 Valves
Manifold Replacement
DeltaV Control
Fire & Gas Modifications
Flowline and Separator Modifications
Hydraulic Power Unit and Master Control System
Produced Water Modifications
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CALLATER TOPSIDES
80,000 Man Hours of Offshore Construction
Diverter Valve
Platform
Choke Access
Platform
Metering Platform
Hydraulic Power Unit
14” and 8” Flowlines
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CALLATER SUBSEA
Facilities Installation
Bundle Towhead Manifolds
3.85km Bundle
Subsea Controls
13km Umbilical
Protection
Tie-ins
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KEY RESULTS
Project Performance
Zero LTI’s in 800,000 project man hours, 80,000 man hours topsides
27% below budget
Aggressive time line with a winter subsea installation
23 months from discovery to 1st oil
First oil achieved ahead of plan
Right first time delivery
Industry recognised and benchmarked as best in class performance
Winner of the OGA MER Award 2017
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Large infrastructure investment have resulted in top quartile production
efficiency and opex/boe
Focusing investments on projects that utilize existing infrastructure to hold
production flat, maintain opex/boe, extend asset life, and delay
decommissioning
Projects competing for funding across our international portfolio
INVESTMENT STRATEGY
Returns focused investments in Forties and Beryl Areas with:
Lower risk platform drilling and water injection optimisation to maintain reservoir pressure
Step out subsea exploration tie-back to operated infrastructure
Future activity consists of:
Operating 2 platform rigs and 1 semi-sub rig
Potential to add more rigs as oil price dependant cash flow allows
Targeting 1 subsea tie-back per year
Investing in safety and production critical assets and infrastructure projects
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Intermediate towhead tie-in
location
Gas Lift via existing Riser A8
Production via existing Riser
A3 or A6
GARTEN FACILITIES DEVELOPMENT
Hydraulic, chemicals, power
via existing Bundle
Gas lift via existing Bundle
Production via existing Bundle
(PL1697 or PL1698)
Production through spare riser
E5
New 6km Production Line
back to RAT
New topsides flowline to Train A
All other services remain from
Buckland System
New Garten well adjacent to S33
Transported via existing BA bridge
pipework
HIPPS
CORONA FACILITIES DEVELOPMENT
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10” PiP production, 8” HSP pipelines
Transported via existing BA bridge
pipework
2 Development Wells
Pipelines & Umbilical alongside Buckland,
rock dump protection
Umbilical entry into Riser A7
Accesses RAT via Production riser E4
Process and export via BA system
Produced Water treatment for
overboard
Aquifer lift & injection pumps for
HSP water supply
13km umbilical –Hydraulics, Chemical,
Power & Comm’s
Simplified Facilities Requirement
Re-use of existing equipment
Greenfield works
Supportive host
Subsea – 9km tie-back
4 slot manifold
10” fully rated pipeline
Umbilical
6” wash water line
Topsides
Production and utility tie-ins
Subsea controls interface
Chemical injection mods
SEAGULL FACILITIES DEVELOPMENT
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STORR FACILITIES CONCEPT
BERYLALPHA RAT
SKENE
BUCKLAND
10 km
15.2km
4km
7km
STORR
20km
9 km
CALLATER2 km
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TITAN FACILITIES CONCEPT
4 Slot production manifold.
11 km 8” insulated production pipeline.
11 km Umbilical
11 km 6” Water Injection pipeline
Power supply (ESP) or Gas lift pipeline
4 Slot production manifold.
1 km Tie-back
Umbilical/Water Injection/Gas Lift
20 - 30,000 BPD oil capacity
200 - 300,000 Barrels storage
ESP or Gas lift Driven Wells
Overboard water
Small FPSO/NUI Platform optionTie back option
VAL D’ISERE FACILITIES CONCEPT
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Val d’Isere Subsea
Manifold
Vail PLET
(Well Tie-in)
Co
ntro
l/ Services Um
bilical
Pro
du
ction
Line
Gas Lift Lin
e
SSIV to Vail (5.4 km)
VVDI SSIV Manifold
Vail to Val d’Isere (5.7 km)
FC Riser (New or Re-
Use)
FC to SSIV (500m)
HPUChemical
InjMCS
TUTU
Test Manifold
Production Manifold
Riser ESDV
MPFM
ESDV /HIPPS
ESDV /HIPPS
PCV
ESDV
HP Flare
Routing Valve
Routing Valve
DGL Header
RiserESDV
System Bundle System Highly Insulated PiP Flowline
Production Line Insulation U- Value ~ 1 W/m2K U- Value ~ 1 W/m2K
Flowlines
10” Prod6” GL
2 x 4” Heating Lines2” Methanol
3” Scale Squeeze
10” Prod6” GL
UmbilicalHP / LP Hydraulic Functions
Power & SignalsChemical Injection (WI / AI / SI)
HP / LP Hydraulic FunctionsPower & Signals
Chemical Injection (WI / AI / SI) Methanol & Scale Squeeze Cores
Structures Towhead Structure (4x) 4 Slot Manifold (VDI)
PLET (V)SSIV
Topsides
Production & GL System Tie-inNew HPU / MCS / Chemical Injection / TUTU
WaterNew Riser Caisson (Prod / GL / Umbilical / HM)
Production & GL System Tie-inNew HPU / MCS / Chemical Injection / TUTU
WaterNew Riser (Prod / GL)
SUBSEA PROJECTS 2018
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Forties ROV Inspection Platform based inspection
Vessel based inspection
Forties ICCP retro-fit clamps
Beryls ROV Inspection Platform based inspection
Vessel based inspection
Infill Wells – Garten, BKA
Nevis South N11 P+A preparatory
Leak detection systems and processes
CP anode retro-fits BA condeep & Flare Tower
Subsea Trees
BA Seawater Ballast temporary plug
Apache expects that Contractors and Suppliers will:
Subscribe to and actively pursue the highest standard of Health, Safety and Environmental performance
Uphold the highest standards of business ethics in its dealings with Apache
Demonstrate honesty, integrity and a sense of urgency
Work with Apache to develop a mutually beneficial relationship, incorporating innovative commercial models where possible
Submit complete and valid invoices in a timely manner, complete with adequate back up documents
Comply with the Supply Chain Code of Practice requirements for Suppliers, in particular the need to maintain up to date records in FPAL.
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SUPPLY CHAIN CONTRACTING
Forward Work Plans
Visit the FPAL website to review this online www.fpal.com
Benefits of the Work Plans:
Help provide an indication of future activity by Purchasers.
Act as a planning aid to help facilitate potential business opportunities.
Support the Supply Chain Code of Practice (SCCoP)