APA Lifts 2027 Capital Plan to $2.5 Billion
Oil and gas operators and upstream suppliers should expect more exploration and offshore activity tied to GranMorgu.
Updated on Nov. 5, 2026 in Oil and Gas
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APA Corp. plans to raise its 2027 capital spending to $2.5 billion from $2.1 billion, with $250 million each going to exploration and to developing the GranMorgu offshore project in Suriname. The increase follows third-quarter profits of $698 million on revenues of more than $2.8 billion, and is directed at oil and gas operators weighing upstream investment priorities.
Why it matters
The shift reflects a deliberate move back toward exploration, with the $250 million allocation returning APA to its targeted 10-15% of annual upstream capital for such work. For oil and gas operators, it signals that a major independent is committing more capital to new discoveries and long-lead offshore projects rather than only maintaining existing production.
APA's 2027 capital plan rises to $2.5 billion from $2.1 billion, split evenly with $250 million for exploration and $250 million for GranMorgu development. Third-quarter results showed $698 million in profit on more than $2.8 billion in revenue, while APA's partnership estate in GranMorgu is 40% against TotalEnergies' 40% stake as operator.
The players
APA Corp.
A Houston-based independent oil and gas producer with upstream operations in the U.S., Suriname, and North Sea-adjacent blocks, whose capital allocation shapes its exploration and development pace.
TotalEnergies
A large integrated European energy company that holds a 40% stake in GranMorgu and serves as its operator.
Eni
An Italian integrated energy company that holds the remaining interest in the OFF-6 block alongside APA's 60% stake.
The details
The capital increase is concentrated in exploration and development of GranMorgu, where APA holds a 40% stake and TotalEnergies, which holds an equal stake, runs operations. The 2027 plan funds two exploration wells in Suriname's GranMorgu development and a winter program in Alaska that includes an exploration well and an appraisal test of the Sockeye discovery. Four GranMorgu wells are planned over the next two years, with the goal of extending the production plateau or supporting a second development.
Timeline
Third quarter 2026: APA reports $698 million in profits.
Winter 2026-27: Alaska exploration program planned.
2027: Capital spending plan of $2.5 billion takes effect.
Next two years: Four GranMorgu wells planned.
Mid-2028: GranMorgu production start targeted.
Market Landscape
The increase places APA's exploration push alongside its partnership with TotalEnergies on GranMorgu, one of the larger offshore projects in the region. Its 10-15% exploration target gives operators a concrete benchmark for judging how much upstream capital an independent producer is willing to commit to new discoveries.
Operators in the upstream supply chain, including drilling contractors and equipment suppliers, should watch for increased activity tied to the 2027 exploration program in Alaska and Suriname. Finance teams at companies serving independents should track how the $2.5 billion budget translates into contract awards over the coming year.
The takeaway
Operators should treat the $250 million exploration allocation as a signal that large independents are prioritizing new reserves, not just maintaining output. Track the timing of the four planned GranMorgu wells and the mid-2028 production target in upcoming quarterly reports, and review your own upstream contract pipeline against that schedule.
Further reading
For broader context on how upstream capital plans are set, explore the Oil and Gas section.
Source note: This article includes information reported by Oil & Gas Journal Online.
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