Apache Corp. in final talks to buy Energy Corp’s shallow Gulf assets

Apache Corp. in final talks to buy Energy Corp’s shallow Gulf assets – Apache Corp. (APA), a co. that engages in the production of natural gas, crude oil, and natural gas liquids, is close to buying assets in the shallow waters of the Gulf of Mexico from Oklahoma City-based Devon Energy Corp. (DNV) for about $1 billion, according to the WSJ – which cites people familiar with the transaction.

The deal, if it materializes, would reinforce Apache’s dominant position in the Outer Continental Shelf of the Gulf of Mexico. The Journal said however, that privately held Dynamic Offshore Resources is still a runner up for Devon’s asset, after finishing second to Houston-based Apache, and could possibly make a last minute bid to win the auction.

Bank of America (BAC) is handling the sale of these shallow-water assets for Devon, according to the Journal sources.

Last November Devon Energy announced an assets sale program which was part of the co.’s efforts to part with its offshore international and Gulf of Mexico assets so it can focus on its onshore oil and gas fields in North America.