Apache to sell stakes in two LNG projects to Woodside Petroleum for $2.75bn

Apache intends to sell its stakes in two liquefied natural gas projects to Woodside Petroleum, an Australian oil and gas producer, for $2.75bn.

The two projects include Wheatstone LNG in Australia and Kitimat LNG in Canada.

Apache will be paid for its net spending of approximately $1bn on the two projects by the closing date. In July, the company announced its plans to step out of the two projects, Reuters.

In addition, the firm is looking at sale or spinoff of its international business in order to concentrate on shale wells in North America.

In August, Woodside Petroleum said that it was exploring acquisitions.

Companies such Shell and Apache are planning to offload assets over concerns of surging costs and dipping prices.

Apache plans to sell 13% interest in Wheatstone, which is majority-owned by Chevron, and its 65% stake in the WA-49-L oil and gas block, which is located offshore Australia.

Besides this, the company is offloading its 50% stake in the Kitimat LNG project, which is a joint venture with Chevron, and associated oil and gas assets in the Horn River and Liard natural gas basins of British Columbia, Canada.

This deal comes at a time when prices of crude have drastically dipped by over 40%.

The deals are likely to complete in the first quarter of 2015.