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Woodside completes Apache LNG, oil deal

Woodside Petroleum completes the purchase of Apache LNG projects and upstream oil interests for US$2.75 billion.
Woodside completes Apache LNG, oil deal

Woodside Petroleum completed its acquisition of Apache’s Wheatstone LNG and Kitimat LNG projects and Balnaves oil interests this month for an aggregate purchase price of US$2.75 billion, and an expected closing adjustment of approximately $1.0 billion. The sell is part of a plan Apache put in place last August to focus on its North American onshore business.

The Canadian Kitimat LNG project closed on 10 April for $845 million, including $354 million in adjustments for reimbursement of net expenditures on the project changes in working capital and other adjustments between the effective date of 1 July 2014 and the date of closing. Final customary approvals by Chevron Corporation, the Kitimat LNG project's downstream operator, were received on 31 March, 2015. The Australian Wheatstone LNG and Balnaves oil interests components were completed on 2 April 2015. Woodside acquired 50% interest in the Kitimat LNG project, including about 320,000 net acres in the Horn River and Liard Basins, adding a growth optiion in an emerging LNG province to the company's development portfolio.

The 2015 production target range is 86 to 94 MMboe, inclusive of Balnaves oil and Canadian pipeline natural gas production for the remainder of 2015. Acquired assets are 2-3 MMboe, while the total range is 86 to 94 MMboe.

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