APA · 10-Q · 2026Q3 · Full report
Gulf of America Decommissioning
APA Corp · 2026-11-05 · Importance 46 · Surprise 42 · From source text
Apache sold its Gulf of America Shelf operations in 2013, and Fieldwood Energy LLC assumed responsibility for decommissioning the properties, known as the Legacy GOA Assets. After GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) in 2022 and 2023 that it could not fund certain obligations, Apache and other current and former owners received BSEE orders and third-party demands to decommission assets. As of September 30, 2026, APA recorded a contingent liability of $765 million for estimated decommissioning costs, including $592 million classified as a decommissioning contingency and $173 million in other current liabilities; it also recorded a $40 million asset for expected reimbursement from security. Apache may also be required to lend GOM Shelf up to $400 million for decommissioning after other funding sources are exhausted.
Key facts
- Apache agreed, upon resolution of GOM Shelf’s second bankruptcy, to loan GOM Shelf up to $400 million for decommissioning, secured by first and prior liens on the Legacy Gulf of America Assets. source
- APA’s asset retirement obligation was $2,948 million as of September 30, 2026, including a long-term obligation of $2,711 million. source
- APA’s contingent liability for estimated decommissioning costs it may be required to perform on Legacy Gulf of America Assets was $765 million as of September 30, 2026, compared with $881 million as of December 31, 2025. source
- As part of Fieldwood’s second bankruptcy resolution, APA agreed to lend GOM Shelf up to an amount omitted in the text for decommissioning, with loans extended when trust funds are exhausted; the loans and obligations are secured by first and prior liens on Legacy GOA Assets. source
- APA has received orders to decommission Legacy GOA Assets not included in GOM Shelf’s notifications and anticipates further notices and orders. source
- Of APA’s $765 million decommissioning liability as of September 30, 2026, $592 million was classified as “Decommissioning contingency for sold Gulf of America properties” and $173 million as “Other current liabilities.” source
- APA and other current and former owners received BSEE orders and third-party demands to decommission certain Legacy Gulf of America Assets after GOM Shelf notified BSEE it could not fund those obligations. source
- Under GOM Shelf’s LLC agreement, production proceeds from Legacy GOA Assets are to fund GOM Shelf operations and decommissioning. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | positive | realized | +0.7% | APA’s contingent liability for estimated decommissioning costs it may be required to perform on Legacy Gulf of America Assets was $765… |
| cash | negative | contingent | -0.2% | Apache agreed, upon resolution of GOM Shelf’s second bankruptcy, to loan GOM Shelf up to $400 million for decommissioning, secured by… |
| assets | positive | contingent | +0.2% | Apache agreed, upon resolution of GOM Shelf’s second bankruptcy, to loan GOM Shelf up to $400 million for decommissioning, secured by… |
| cash | negative | committed | — | As part of Fieldwood’s second bankruptcy resolution, APA agreed to lend GOM Shelf up to an amount omitted in the text for decommissioning,… |
| liability | negative | committed | — | APA has received orders to decommission Legacy GOA Assets not included in GOM Shelf’s notifications and anticipates further notices and… |
| liability | negative | contingent | — | APA has received orders to decommission Legacy GOA Assets not included in GOM Shelf’s notifications and anticipates further notices and… |
| liability | negative | realized | — | Of APA’s $765 million decommissioning liability as of September 30, 2026, $592 million was classified as “Decommissioning contingency for… |