Apache to start production at Van Gogh development

US independent Apache Corporation announced it has started oil production from the Van Gogh development in the Exmouth basin, off Western Australia.

"Production from Van Gogh is projected to ramp up during the first half of the year, making a significant contribution to Apache's growth in 2010," said co-chief operating officer and president Rod Eichler.

The Van Gogh field is being developed using the Ningaloo floating production storage and offloading vessel. The FPSO has the capacity to process 150,000 barrels of liquids per day, including 63,000 barrels of oil per day, and store 540,000 barrels of oil.

“Apache plans to invest nearly $1 billion in Australia during 2010, funding exploration and a range of projects that includes Van Gogh, Pyrenees, Julimar/Wheatstone and Reindeer/Devil Creek,” said the company in a statement.

Apache is operator of the Van Gogh field with a 52.5% share, with partner Inpex holding the remaining stake.