3rd draft-Apache Egypt Newsletter

January 2017
Good bye 2016, welcome 2017
IN THIS
ISSUE
‣ TWO BLOCKS IN THE
2016 BID ROUND
‣ PETROLEUM
MINISTER’S VISIT TO
QARUN BASE
‣ QPC 2016
HIGHLIGHTS
‣ KPC 2016 HIGHLIGHTS
‣ APACHE EGYPT 2016
ACHIEVEMENTS
‣ APACHE’S PEOPLE
‣ APACHE EGYPT
EVENTS
‣ END OF YEAR
MESSAGE
As another successful year draws to a
close, it is remarkable to realize how
much has been achieved by the
employees, Apache, and our joint
ventures. In this newsletter, it is
worth highlighting what made this
year a success. One of the key
highlights of 2016 was Apache’s
achievement of winning two new
blocks in EGPC bid round. It is also
important to acknowledge how our
joint ventures contributed in the
company’s overall production
activities. There was an increase of
9,080 BOEPD in Apache’s gross
production, which is 3% above plan.
This year witnessed many important
events: the visit to QPC’s Qarun Base by
the Minister of Petroleum and Mineral
Resources, Khalda's success in drilling and
completing two wells at North East Abu
Gharadiq, and the USBEC Mission event
where Apache had a chance to meet many
government representatives. This
newsletter includes information about last
quarter’s Town Hall, the 5th Fun
Run/Walk/Cycle Day, and Springboard
Schools graduation ceremony. It is also a
channel to recognize the employees who
worked hard to achieve 2016 goals and
welcome those who are new onboard. It is
the New Year, and this newsletter is all
about what has been accomplished and
what is new for 2017!
EGPC 2016 Bid Round Success
Apache has won two blocks in the 2016 bid round. Winning these blocks (Block 6
– NW Razzak and Block 7 – S Alam El Shawish) will provide Apache the opportunity
to further grow the Egypt Region and build on the success the company has
achieved to date. The two blocks provide significant running room and a drilling
inventory for years to come. They are prospective acreages that can fuel Apache’s
growth. “Our success in securing these blocks would not be possible without the
hard work and effort from our employees across departments. I personally would
like to thank members of the Exploration, Commercial, Reservoir, Finance, and
KPC/Apache Operations departments. This was a true ‘Team of Teams’
accomplishment. I would also like to thank our Sinopec partners for their
confidence and support in Apache Egypt. The winning of these two blocks further
underscores the importance of the Egypt Region, the momentum we’ve gained
throughout the year in growing and maintaining production with lower capital and
in driving our costs down. I’m proud of each of you and your dedication to Apache,”
said Mr. David Chi, Vice President & General Manager.

Commitment to
operational
excellence,
safety,
environmental
and social
responsibility
Eng. Tarek el Molla’s VisiT To Qarun base
Minister of Petroleum and Mineral Resources, Eng. Tarek El Molla, visited QPC’s Qarun Base on November 24th to
celebrate the completion of Petroshahd’s storage facilities at Qarun Base. The visit also celebrated the completion of
QPC’s new 50,000 BPD separator, new accommodation facilities, and security arrangements at Qarun Base3. Apache
Egypt Regional VP, David Chi, and EGPC CEO, Eng. Tarek El Hadidi, visited along with MD’s and senior management
from QPC, Petroshahd, Petroleum Ministry, and shareholder companies, EGPC, Kuwait Energy, and Sipetrol. Both QPC
and Petroshahd made presentations of ongoing company activities and recent accomplishments. Following the
presentations, Eng. Tarek El Molla gave special recognition to the significant progress made by QPC on cost reduction
and production optimization.
QPC 2016 Highlights
Apache’s joint venture, Qarun Petroleum Company (QPC), has accomplished many great milestones in 2016.
West of Nile (WON) area marks a very important location for QPC as it continues to exceed expectations. It has
achieved a production record of 6,729 BOPD and improved waterflood performance with ESP-powered
dumpfloods. QPC has also drilled 16 new wells and succeeded in reducing costs through reduced diesel and
chemical consumption and the innovation of the ESP-powered dumpflood. The extension of the Misaada Field
resulted in an increase of 5 mmbbl STOIIP this year. The facilities were also expanded in the following areas:
Qarun CPF, SWQ WF and WON A. From January 2016 until November 2016, QPC achieved a total of 275 mmbbls
oil produced. 2016 successes set a high bar for 2017. In 2017, QPC will continue drilling in Karama and WON
areas and exploring in Basha and Azhar areas. QPC doesn’t only focus on continuing its projects, but also on
sustaining and improving the company’s performance. QPC 2017 plans include: improve the facilities that serve
the Karama area, evaluate the pipeline options for the WON area, focus on reducing produced water, and other
activities to improve performance and reduce costs.

KPC 2016 Highlights
Apache’s other joint venture, Khalda Petroleum Company (KPC), has also had a great year. KPC
2016 undertakings varied from high-rate wells from all basins to high-rate wells from all major
reservoirs. Also KPC focused on early field development, step-out opportunities, infill locations,
and waterflood optimization. This focus has led to a continued development at Ptah, WKAL-A,
Herunefer, and Razzak. An additional 12 wells at Salam will result in an expansion of the
waterflood. KPC successfully drilled and completed two Apollonia horizontal wells and is proud to
advise that Apache and Khalda are the first companies to introduce the frac horizontal technology
to Egypt. This technology will increase production of unconventional gas and decrease uncertainty
for drilling. KPC’s success established a positive reputation at the Ministry of Petroleum. It also
advanced EGPC’s confidence in Apache and KPC.
2016 success in a nutshell

New Hires
Marta Roushdy
Deputy Contracts
General Manager
KPC
Robert Bobo
Deputy Material
General Manager
KPC
Dr. Dina Salah
Legal Counsel
Apache
Jared Blake
HSE Region Manager
Apache
The Fire in the belly Award
aPaCHe’s
PEOPLE
Sara Mikhael
Senior Production
Engineering Data Expert
KPC
Mariam Moheb
Commercial Advisor for
Governmental Affairs,
Egypt Commercial Services
Apache
Sonya Darwish
Assistant Material
Department
Apache
The Fire In the Belly Award recognizes a team member who goes the extra mile and works hard to achieve goals.
This well-deserved recognition was given to 3 remarkable employees: Sara Mikhael, Mariam Moheb and Sonya
Darwish. Here is a glimpse of their hard work: Sara Mikhael for her commitment in Wepco agreement that lead to
substantial savings, Mariam Moheb for her determination in finalizing the Khalda offset amendments and Sonya
Darwish for her relentless support of KPC projects. Congratulations Sara, Mariam and Sonya!
The best answers win award
Ahmed Saad
Traffic Permits
Administrator
Apache
Mohamed Rabie
Tax and Audit Manager
Apache
Mostafa Mahmoud
Senior Auditor
Apache
The Best Answers Win Award
recognizes a team member who
provides ideas, takes initiatives,
enhances workflow and optimizes
performance. This award was
given to Ahmed Saad, Mohamed
Rabie and Mostafa Mahmoud for
their contribution in obtaining
sales tax exemption for mobile
phones.

The Team behind the scenes
Ashraf Ghaly Walaa Salama Heba Askar Mohamed El Ghawaby Sameh Hussein
Geophysical Advisor Geologist III Geologist I Geological Prospects Supervisor Petrophysicist Senior Staff I
Wael Abd El Razek Hani Nasr Ahmed Arafa Mohamed Saher Mohamed Hafez
Petrophysicist Senior Staff I Prospect Team Manager Geophysicist II Senior Staff Petrophysicist II Senior Data Center Supervisor
“Apache Egypt was recently awarded 2 new exploration concessions in the
Western Desert by EGPC, NW Razzak and South Alan El Shawish, with both blocks
combined totaling almost 1.57 MM gross acres (6356 km2). This award follows a
concerted technical effort during the summer by a focused team within the
Apache Egypt Exploration Department, together with key individuals in Apache
Egypt's Reservoir and Commercial Departments.
Mostafa Hussein
Geophysical
Advisor
These awards will need to be negotiated to final Petroleum Sharing Contracts
(PSC's) acceptable to Apache, EGPC, and the Ministry of Petroleum before being
reviewed and approved by the Egyptian Parliament to become ratified into law.
This is expected by sometime during the summer of 2017. Exploration activities
should start later in 2017.
The Apache Egypt Bid Round team was supported by many individuals within the
Apache Egypt Exploration Department, which also frequently supports all Apache
departments and our 2 joint ventures, Khalda and Qarun, in many ways (data,
licenses, scout, maps, drafting, etc). This bid round effort could not have been
possible without all support within the Exploration Department, but also
Reservoir and Commercial. Additionally, key prior studies by Apache Exploration
and several together with EPT technology group in Houston made this evaluation
and successful bid possible. Finally, support from RVP David Chi and Houston
Executives made Apache's effort successful. Apache Egypt can now look forward
to new and exciting value-add activity in the years to come. This was truly a 'Team
of Teams' effort,” mentioned Mr. Joe Versfelt, Apache Egypt Region Exploration
Manager.
The team who worked on the 2016 EGPC Bid Round received The Team of Teams
Award this past December at the Town Hall. The Team of Teams Award recognizes
a team member who provides a helping hand to others, supports the team and
focuses on team results over personal achievements. The team members are:
Ashraf Ghaly, Walaa Salama, Heba Askar, Mohamed El Ghawaby, Sameh Hussein,
Wael Abd El Razek, Hani Nasr, Ahmed Arafa, Mohamed Saher, Mohamed Hafez,
and Mostafa Hussein.

A new Deputy HR & Public Relations Manager
on board
Tell us about your background and how you got involved in Human resources?
My name is Rehab El Sawy. I graduated from the Faculty of Commerce, Cairo University
in 1986. I also hold a Masters of Business Administration in Human Resources
Management from the German University in Cairo. My first job was at Sahara Group; I
was part of the company’s finance team. There was no HR department at the company
while I was there however I was responsible for the payrolls and the employees’ benefits.
After 7 years at Sahara group, I moved to the finance department at British Gas. We were
only 30 employees when I first joined. After British Gas’ expansion in Egypt and the
number of employees started to increase, the company decided to start developing an
HR department. I also took the decision to move from the finance department to the HR
department. I was thankful to grow with British Gas and I was honored to be part many
successful projects. After 15 years at British Gas, I joined Citadel Capital and I contributed
in providing HR consultancy to several companies. I also joined Egyptian Liquefied Natural
Gas after 3 years at Citadel Capital. I had a long journey in Human Resources and I am
glad I finally landed in a great company like Apache.
Ms.Rehab El Sawy
Deputy HR &
Public Relations
Manager
What was your first impression of Apache?
From the first day, people are very sweet and welcoming.
What is the first wish on your list? Why?
I will try as much as I can to automate all the manuals to save everybody’s time.
How do you define company culture? What would you do to help to maintain it as the
company grow?
I think the most important thing is employees’ engagement. The employees shouldn’t be
isolated with their computers. I think I will focus on solutions to improve the employees’
engagement and involvement.
What else do you want Apache employees to know about you?
I appreciate the employees who are eager to learn. I think each employee should be open
to learn from another employee no matter what is her/his age or position. Employees
should also focus on improving themselves; what they need to improve in their skills,
how they can be more efficient. I also believe in the power of Team work. Team work
makes wonders!
Final message?
I am very proud that Apache won the 2016 bid. I hope the new two concessions bring
more success to the company.

We work hard and play harder!
Events
Apache Egypt’s Town Hall was held on December
14th. Upon entering, each employee received a
gift that contained an oil drop from Apache’s
biggest discovery, Alpine High. The purpose of
this town hall meeting was to celebrate the
company’s achievements throughout the year
and hear employees’ ideas and concerns. After
welcoming remarks, Apache Egypt Vice President
and General Manager, Mr. David Chi, presented
Apache’s 2016 highlights and expressed his
thanks for this year’s achievement. He also
shared the Apache business plan for 2017.
Khalda’s general manager, Mr. Mark Konecki, and
Qarun’s general manager, Mr. Jeff Wedgewood,
presented an overview of the joint ventures’ 2016
achievements. Mr. Jonathan Kurtz, Human
Resources and Administration Manager, took the
opportunity to welcome the new hires and
acknowledge outstanding employees. The Town
Hall wasn’t all work, though. At the end of the day,
the employees were divided into teams to play a
game of Jeopardy and have a chance to win prizes.
The game brought energy to the event, was great
for team building, and created a positive
competitive spirit between employees.
The 5th Fun Run/Walk/Cycle Day
This year marks the fifth anniversary of the Fun
Run/Walk/Cycle event and was organized by the Wellness
Program and Springboard team. The goal was not only to
promote a healthy lifestyle for Apaches and their families, but
also to raise funds for the Springboard schools. The event took
place at the Wadi Degla Protectorate on November 17th
where participants gathered to walk, run and cycle. They
covered a cumulative distance of 640 kilometers allowing the
Apache Schools team to purchase 16 computers for the
Springboard Schools.
Apache Egypt women network 2 nd session
Dr. McKenna Eastment was guest speaker at the second session of Apache Women Network.
Dr. Eastment is a physician specializing in infectious diseases through the University of Washington in
Seattle, Washington. Currently residing in Nairobi, Kenya with her husband and 3-year old daughter,
she is conducting research on HIV. The session’s topic was “Thoughts For a Successful Career and a
Fulfilling Life.” Dr. Eastment talked about her beliefs for setting personal and professional goals. “The
first step in setting short and long term goals is to write them down. It is hard to achieve them but
always try your best,” stated Dr. Eastment. She also stressed that it is important to have a mentor to
help in achieving goals and inspire to do better. The Apache Egypt ladies found it to be a very
interesting session.

Springboard Graduation
Ceremony
October 5th, 2016, marked a very special day for Apache. It is the day
Apache honored 70 graduates from 35 Springboard schools in Fayoum
who are currently enrolled in high schools to continue their education.
The celebration commemorated the road that Apache’s Springboard
schools project team, students and teachers have traveled together.
The ceremony was attended by Mr. Adel Abd El Moneim, the
Undersecretary of the Ministry of Education- Fayoum Governorate,
officials from the Ministry of Education, our partners at the National
Council for Childhood and Motherhood, and Mr. David Chi, Vice
president and General Manager of Apache Egypt along with other
guests from Apache, Sinopec, Khalda, and Qarun. Mr. Chi presented
the awards and certificates to the students and their teachers. Mr. Chi
also handed awards to Fayoum’s educational administration team
appreciating their efforts towards the schools and the students.
“Apache know that you have big dreams and aspirations, we saw that when we honored some of the students from
Minya earlier this year, we were surprised how ambitious they are and of course you are not different, which gives me
the opportunity to tell you that Apache will try to help you achieve your dreams even after your graduation from the
Springboard schools as long as you chase those dreams,” mentioned Mr. Chi.
Upcoming events
Visit Apache’s Booth at
one of the biggest
petroleum events
14-16 February 2016
Cairo International Convention & Exhibition
Centre
The final word
From apache Egypt Vice President and general manager
Our vision for 2017 can be summed up in 3 strategies: to respond to market
changes through maintaining operational flexibility, to actively manage the
portfolio through further streamlining, to focus on capital budgeting that is
based on conservative price assumptions. We will be able to accomplish these
strategies through several ways. In North America onshore projects, we will
work on growing the production. We will strive hard to increase development
activity in Midland and Delaware core. We will also continue delineation and
ramp production in Alpine High with 4-6 rigs. Along with these activities, we will
focus on cost optimization and the funding of SCOOP, Montney and Duvernay.
Regarding the international & offshore projects, we will aim to invest more to
sustain the production and the free cash flow in Egypt and the North Sea. We
will continue lowering the risks and developing high impact exploration in
Suriname area. Our strategic goals for Apache Egypt are to sustain and
maximize production and cash flow in a concession-based regime while
operating in a safe and environmentally prudent way and to have an impact on
our share price by increasing investor’s confidence in Egypt’s asset value.
David Chi
Apache Egypt Vice
President and General
Manager
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