A Texas federal jury found that Apache Corp. did not breach its contract with W&T Offshore Inc., a Houston-based oil and gas producer, in a dispute that began in 2011.
The jury verdict was accepted by the U.S. District Court for the Southern District of Texas, while allowing W&T to file any post-verdict motions.
Apache Corp., an independent oil and gas exploration and production company, has operations in Canada and Egypt, in addition to the United States. W&T Offshore has operations in approximately 66 offshore fields in the Gulf of Mexico. W&T also has onshore operations in the Permian Basin of West Texas, but a substantial majority of the company’s operations are offshore.
W&T filed the lawsuit against Apache, also based in Houston, in 2011, claiming that the energy company breached a processing contract and recorded inaccurate figures regarding how much processed oil was owed to W&T.
Apache has now filed a countersuit claiming $31.5 million in damages. Apache representatives stated that W&T breached the joint operating agreement by failing to pay its assigned share of 49 percent of costs associated with plugging and abandoning three Gulf of Mexico offshore wells.
An Apache spokesman said that W&T refused to comply with “clear contractual obligations,” leading Apache to file the countersuit.