Apache, Total Announce JV In Block 58 Offshore Suriname

(RTTNews) - Apache Corp. (APA) and Total S.A. (TOT) reached a joint venture to explore and develop Block 58 offshore Suriname.

Apache and Total will each hold a 50 percent working interest in Block 58, which comprises about 1.4 million acres in water depths ranging from less than 100 meters to more than 2,100 meters.

Apache will operate the first three exploration wells in the block, including the Maka Central-1 well, and subsequently transfer operatorship to Total.

In exchange for a 50-percent working interest, Apache will receive various forms of consideration, including $5 billion of cash carry on Apache's first $7.5 billion of appraisal and development capital; 25% cash carry on all of Apache's appraisal and development capital beyond the first $7.5 billion; various cash payments in conjunction with closing of the joint venture agreement and future production from joint development projects; and reimbursement of 50% of all costs incurred to date in Block 58.

The transaction is expected to close within three days.