News Post
Woodside buys Apache’s stake in Wheatstone, Kitimat LNG projects
Apache Corp. is to sell its interest in two LNG projects, Wheatstone LNG and Kitimat LNG, along with accompanying upstream oil and gas reserves, to Woodside Petroleum for a purchase price of $2.75 billion.
Under the terms of the agreement, Apache will sell its equity ownership in its Australian subsidiary, Apache Julimar Pty Ltd, which owns a 13% interest in the Wheatstone LNG project and a 65% interest in the WA-49-L block, which includes the Julimar/Brunello offshore gas fields and the Balnaves oil development.
The transaction, which has an effective date of June 30, 2014, will also include Apache's 50% interest in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in British Columbia, Canada.
Based on current estimates, Apache's net proceeds upon closing are expected to be approximately $3.7 billion.
"Today's announcement marks the successful completion of one of our primary strategic goals of exiting the Wheatstone and Kitimat LNG projects,” said G. Steven Farris, Apache’s chairman, CEO and president.
“We look forward to the redeployment of the proceeds from this sale, which may be used to reduce debt, repurchase shares and to pursue other opportunities that enhance our asset base and drive profitable production growth," Farris added.
Upon completion of the transaction, Apache will continue to hold upstream acreage offshore Western Australia in the Carnarvon, Exmouth, and Canning basins along with related hydrocarbon reserves and production.
Apache will also retain its 49% ownership interest in Yara Holdings Nitrates Pty Ltd and 10% interest in the related ammonium nitrate plant.
The transaction is expected to close in the first quarter of 2015.
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