Woodside completes acquisition of Apache’s stake in Canadian LNG asset

Australia’s independent oil and gas company Woodside has completed the acquisition of Canadian Kitimat LNG project, for $854m, from Apache.

Woodside also recently acquired Wheatstone LNG and Balnaves oil from Apache as part of an agreement signed in 2014.

In December 2014, Woodside Petroleum signed an agreement to acquire Apache’s two LNG projects, Wheatstone LNG and Kitimat LNG, along with related upstream oil and gas reserves for $2.75bn.

Under the agreement, Apache agreed to sell its interest in its Australian subsidiary, Apache Julimar, which owns a 13% stake 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 agreement also included Apache’s 50% stake in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in British Columbia, Canada.

The transaction component relating to the Canadian Kitimat LNG project also included $354m in adjustments for reimbursement of net expenditures in the Wheatstone and Kitimat LNG projects, between 30 June 2014 and closing.

Recently, Apache signed an agreement with a consortium of private equity funds managed by Macquarie Capital Group and Brookfield Asset Management to sell its Australian subsidiary Apache Energy for $2.1bn.

Upon completion of the transaction, Apache will fully exit its exploration and production business in Australia.

Oil and gas exploration and production company, Apache has operations in the US, Canada, Egypt, the UK and Australia.