Apache Corp. stock surged after it said it’s formed a joint venture with fellow oil and gas exploration company Total to develop an offshore field in Suriname.
Houston-based Apache said it will hold a 50% stake in the South American project, which comprises about 1.4 million acres at depths between 100 and 2,100 meters. France’s Total SA will hold the other 50% stake in the project, known as Block 58. Total will cover the first $5 billion of Apache’s costs and be reimbursed for 50% of costs already incurred, in addition to other cash payments, the company said in a statement late Sunday.
Apache stock is up 1% so far this year, but it closed up 17% at $26.53 on Monday.