Apache Promotes Executives, Shutting Tulsa Office--Update

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 [e-mail]

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