By Erin Ailworth
Apache Corp., one of the biggest U.S. independent oil companies,
has promoted several executives as it reorganizes leadership under
a new chief executive, and is shutting down its Tulsa, Okla.,
office as it consolidates to Houston.
The company expects to offer more than half of its 160 workers
in Tulsa jobs within the organization's other offices, and lay off
rest.
Apache has been in a yearslong process of selling off many
international oil and gas fields while boosting its drilling and
production in North America. John Christmann IV, who took the role
of chief executive officer in January, said the changes announced
Monday will help further streamline operations, cut costs and
increase efficiency.
As part of the reorganization, Apache will roll its U.S. onshore
and Canadian operations into two super regions managed from Texas.
The company is also combining its Gulf of Mexico, North Sea, and
Egyptian operations into one international division.
Over the last five years, Apache has divested energy properties
in places like Argentina and Australia, and shed expensive
liquefied natural gas operations to focus on drilling in U.S. shale
fields and Canada. Today, 65% of the company's operations are in
North America, up from 35% in 2009.
Among several leadership changes, James House, managing director
of Apache's North Sea operations, will become senior vice president
of the company's new Houston super region, which includes the South
Texas Eagle Ford shale and Canada.
The company's reorganization is expected to be complete by the
end of the third quarter, and details about cost savings will be
detailed in the company's second-quarter conference call this
summer.
Despite the increased investment in North America, Apache's
operations in Egypt and the North Sea remain important, said
Castlen Kennedy, a spokeswoman for the company.
"They're areas where we still have running room," she said.
Given the downturn in oil prices since last summer, crude pumped
outside the U.S. is particularly advantaged because its price is
based on Brent, the global benchmark price, which has been higher
than U.S. West Texas Intermediate prices.
Write to Erin Ailworth at Erin.Ailworth@wsj.com
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