The following table identifies changes in Apache’s LOE rate from 2011 to 2013: For the Year Ended December 31, 2013
For the Year Ended December 31, 2012 Per boe
2012 LOE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.41 Divestitures(1) . . . . . . . . . . . . . . . . . . . . . . (0.12) Power and fuel costs . . . . . . . . . . . . . . . . . 0.19 Labor and overhead costs . . . . . . . . . . . . . 0.17 Non-operated property costs . . . . . . . . . . . 0.13 Transportation . . . . . . . . . . . . . . . . . . . . . . 0.12 Workover costs . . . . . . . . . . . . . . . . . . . . . 0.07 Repairs and maintenance . . . . . . . . . . . . . 0.07 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.11 Other increased production . . . . . . . . . . . . (0.15) 2013 LOE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.00 (1)
Per boe
2011 LOE . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.54 Repairs and maintenance . . . . . . . . . . . . 0.39 Labor and pumper costs . . . . . . . . . . . . . 0.31 Non-operated property costs . . . . . . . . . . 0.12 Workover costs . . . . . . . . . . . . . . . . . . . . 0.06 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10 Other decreased production . . . . . . . . . . 0.01 Acquisitions(1) . . . . . . . . . . . . . . . . . . . . . (0.12)
2012 LOE . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.41
Per-unit impact of acquisitions and divestitures is shown net of associated production. Gathering and Transportation
We generally sell oil and natural gas under two common types of agreements, both of which include a transportation charge. One is a netback arrangement, under which we sell oil or natural gas at the wellhead and collect a lower relative price to reflect transportation costs to be incurred by the purchaser. In this case, we record sales at the netback price received from the purchaser. Alternatively, we sell oil or natural gas at a specific delivery point, pay our own transportation to a third-party carrier, and receive a price with no transportation deduction. In this case, we record the separate transportation cost as gathering and transportation costs. In the U.S., Canada, and Argentina, we sell oil and natural gas under both types of arrangements. In the North Sea, we pay transportation charges to a third-party carrier. In Australia, oil and natural gas are sold under netback arrangements. In Egypt, our oil and natural gas production is primarily sold to EGPC under netback arrangements; however, we also export crude oil under both types of arrangements. The following table presents gathering and transportation costs we paid directly to third-party carriers for each of the periods presented: For the Year Ended December 31, 2013 2012 2011 (In millions)
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . North Sea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Gathering and transportation . . . . . . . . . . . . . .
$155 84 42 7 9 $297
$163 69 39 24 8 $303
$166 64 34 25 7 $296
2013 vs. 2012 Gathering and transportation costs decreased $6 million from 2012. The U.S. costs for 2013 increased $15 million as compared to 2012 primarily as a result of increased production in the Permian and Central region from increased drilling activity. Egypt costs were up $3 million from increases in the world scale freight rates. North Sea costs decreased $17 million. Canada’s costs decreased $8 million from a decline in activity.
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