Apache to divest Australian energy business for $2.1bn

A consortium of private equity funds managed by Macquarie Capital Group and Brookfield Asset Management has signed an agreement with US oil and gas company Apache to acquire Australian subsidiary Apache Energy for $2.1bn.

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

Apache president and CEO John Christmann said: "Over the last five years, we have transitioned Apache’s primary growth engine to North America onshore through the announcement or completion of approximately $17bn of asset purchases and $17bn of asset sales.

"Following the sale of our Australian assets, approximately 70% of Apache’s production will come from North America onshore.

"Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cashflow."

The deal is subject to necessary government and regulatory approvals and customary post-closing adjustments.

In March, Apache Energy’s assets and its subsidiaries averaged production of approximately 49,000 barrels of oil equivalent a day.

Recently, the company divested its Wheatstone LNG project and related oil and natural gas properties to Woodside Petroleum for $2.8bn.

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