Woodside closes deal with Apache

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Artist's impression of the Wheatstone plant site Image credit: www.apachecorp.com

Woodside Petroleum has announced that it has finalised the purchase of Apache’s stakes in the Wheatstone LNG and Balnaves oil projects located in the Northern Carnarvon basin, offshore Western Australia.

Artist's impression of the Wheatstone plant site Image credit: www.apachecorp.com
Artist’s impression of the Wheatstone plant site
Image credit: www.apachecorp.com

According to the company’s ASX Announcement, Woodside also acquired interests in Apache’s Kitimat project which is located in British Columbia, Canada; this component of the transaction will close next week, at a cost of approximately $854 million, and a closing adjustment of $354 million.

The Australian Wheatstone LNG and Balnaves oil component of the transaction closed on 2 April.

The total acquisition has been valued at US$2.75 billion, with an expected closing adjustment of approximately US$1.0 billion.

Under the sales agreement, Woodside acquired Apache’s 13% interest in the Wheatstone LNG project, and a 65% interest in the Julimar-Brunello upstream gas development.

Woodside announced that it had entered into a binding transaction with Apache Corporation to acquire Apache’s Wheatstone LNG and Balnaves oil interests in Australia and Kitimat LNG project interests in Canada in December 2014.

The Perth-based company said it would update its 2015 production target, investment expenditure outlook and oil and gas reserves, to reflect the acquisitions, once the Kitimat deal settled.

Last month, Woodside signed production sharing contracts (PSCs) for blocks AD-2, AD-5, A-4 and A-7 offshore Myanmar.

Executive Vice President Global Exploration, Phil Loader, said the company plans to commence an active program of exploration in the region in 2015 and beyond.

“The Rakhine Basin is an emerging oil and gas province that fits very well with Woodside’s proven capabilities in deepwater exploration and development,” Mr Loader said.