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Apache Corporation

Apache Corporation is a leading independent oil and gas exploration and development company with operations in North America, Egypt, Western Australia, Poland, and the People's Republic of China. Apache derives its success from the entrepreneurial spirit of its people, focused business strategies and application of the best technology.

Apache's Stag field offshore Northwest Australia achieves sustained production of 23,000 barrels of oil per day Houston (Jan. 12, 2000) — Apache Corporation (NYSE: APA) said today that sustained production from its Stag oilfield offshore Northwest Australia has surpassed 23,000 barrels per day. Stag, which is in 150 feet of water 37 miles northwest of Dampier, Western Australia, is now operating with eight producing wells and four water injection wells.

Apache's program of well workovers and two new producing wells as well as installation of new pumps and water injectors has increased production substantially from the 1999 average output of about 10,000 barrels per day.

Due Diligence — Occupational Safety, Health and Environment

Issue

Apache Energy selected Slimdrill to design and build a Work-Over Rig for it's Stag Project, a bold venture for the Stag Field situated 60km NW of Dampier WA. The project involved building a production platform and incorporating a highly customised Slimdrill Rig to provide the workover mechanism for the project.

Apache required Slimdrill to demonstrate due diligence in relation to it's (Slimdrill's) Occupational Safety, Health and Environment legislative requirement.

Solution

Ringshaw Consulting, in consultation with Slimdrill's project team and oil industry experts determined the scope of work required, as this type of project had not been undertaken before.

Initially, a series of 19 Standards were recommended to Slimdrill management, along with a number of Policies covering OSHE Commitment, Waste Management, Training, Communication and Consultation, to meet due diligence.

A Job Safety Analysis process was utilised to prepare procedures for the building and assembly of the rig. A total of 25 procedures ranging from Clearance to Work through to Incident Management were developed, a Procedure Register that linked to a OSHE Standards Document Map and Hazard Register were compiled and implemented to demonstrate OSHE legislative compliance.