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US independent Apache edged its Egyptian output higher in Q1 as the country’s share of Apache’s capex topped 25% for the first time.
Amid a 64% cut to its overall capex from a year earlier, its Egyptian spend is down (see table), but by much less than its core North American assets, where the $241mn Q1 spend is down 73% on the $900mn Q1 2015 figure. The firm’s overall capex fell to just $447mn in Q1, a massive reversal from the quarterly average of $2.75bn throughout the 2012-2014 boom years.
It is focusing investment on “high margin” areas such as Egypt, where the firm calculates its recent margins at $17/barrel of oil equivalent (boe): US margins range from $5-$11/boe. For 2016 as a whole Apache has earmarked 23% of planned $1.4-1.8bn capex to Egypt (see chart and MEES, 11 March).
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