Akin Gump Strauss Hauer & Feld LLP advised Apache in its joint venture transaction with Total S.A.
Apache Corporation and Total S.A. today announced a significant oil discovery at the Maka Central-1 well drilled offshore Suriname on Block 58.
On December 23, 2019 Apache Corporation (NYSE, Nasdaq: APA) and Total S.A. (NYSE: TOT) announced a joint venture agreement to explore and develop Block 58 offshore Suriname. Under the terms of the agreement, Apache and Total will each hold a 50 percent working interest in Block 58, which comprises approximately 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. Apache and Total have also agreed to bear their proportionate working interest share of costs on all future exploration wells.
The Akin team included oil and gas partner David Sweeney (Picture) and counsel Eduardo Canales.
Law Firms: Akin Gump;
Clients: Apache Corporation;