March 4, 2020 / 10:07 PM / 24 days ago

Apache simplifies organizational structure to 3 teams

March 4 (Reuters) - Apache Corp said on Wednesday it has revamped its organizational structure to three teams and named new leaders for two of them, a week after taking a more than $1 billion write down on its once prized Alpine High assets.

The company said in October it had undertaken a redesign of its organizational structure and operations.

Apache said its current pipelines and transportation head Clay Bretches will lead the operations team, which will look over drilling and completion, facilities and production engineering as well as environment, health and safety.

David Pursell, who was in charge of the company’s planning, and reserves, was named as the executive vice president of the development team, with added responsibility for reservoir engineering, as well as asset management.

The company said a head for its exploration team will be named after an ongoing search.

Last week, Apache said it would cut or stop spending on its Alpine High project situated in a remote corner of the Permian basin.

Since it bought Alpine High field during the oil price downturn of 2015 and 2016, the asset has needed heavy investment in pipeline infrastructure, and delivers mostly natural gas at a time when prices for the fuel are at their lowest in more than two decades.

The Houston-based company, which has been shifting focus to oil-rich assets, plans to close its San Antonio, Texas office overseeing Alpine High and said it had no rigs drilling in the area at the end of 2019.

Apache took a $2.7 billion charge in its fourth-quarter results reported last week, including a non-cash impairment of $1.4 billion related to the assets.

However, it reported a surprise adjusted profit then, benefiting from higher output at its shale assets in the Permian basin.

Apache shares, which closed down 0.5% at $25.13, were unchanged in after-market trading. (Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta)

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