Apache is progressing with a standalone floating production, storage and offloading vessel on the Theo-Van Gogh discoveries in the deep-water Exmouth sub-basin. The field is in 350m water depth.

The Theo and Van Gogh finds are in a special "pre-defined" area within exploration Block WA-155-P. The owners are operator Apache with a 52.5% working interest, and Japan's Inpex with 47.5%. The Van Gogh oil field has reserves of roughly 59 million barrels, with production forecast to last 12 years. The Vincent oilfield straddles Woodside's Block WA-28-L and Apache's pre-defined area in Block WA-155-P. Woodside and Japan's Mitsui are developing Vincent's 73 million barrels of recoverable oil in Block WA-28-L.

Norway’s Prosafe has won a $418 million charter for the FPSO. The contract has a seven-year firm period, followed by options for a maximum of eight years. Prosafe will be responsible for the engineering, procurement, construction, installation, commissioning and operation of the floater. The vessel is expected to arrive in the field in the fourth quarter of 2008. The FPSO will be able to process 150,000 barrels of liquids per day, its crude production has been pegged at 63,000 barrels of oil per day and oil storage will be 620,000 barrels.

The first horizontal well Theo 3-H flowed 9,694 barrels of oil per day. Apache is planning to drill 18 additional long-reach horizontal laterals at Van Gogh later this year. The Theo 3-H well was drilled in 1,205 feet of water to a measured depth of 10,598 feet with a 4,554-foot-long horizontal section in the Top Barrow formation. The test was limited by the capacity of downhole and surface equipment.

Acergy SA was awarded an $85 million contract for installation work. The contractor will be responsible for installing and tying in flowlines, risers, manifolds and a floating production storage and offloading (FPSO) unit mooring. Offshore work will begin in the third quarter of next year. Engineering work for offshore installation and tie-in services will begin immediately from Acergy's heavy construction ship, the Toisa Proteus.

Developing the field will cost roughly $500.2 million, with initial production estimated at 60,000 barrels per day. The project is expected to begin production in April 2009.