Woodside Closes Apache Deal

Woodside has completed the purchase of Apache Corporation's assets in Australia and Canada, the Australian company said Thursday.

In December last year, Woodside entered into a binding transaction with the Texas based company to acquire its Wheatstone LNG and Balnaves oil interests in Australia and Kitimat LNG project interests in Canada, for $2.75 billion and an expected closing adjustment of approximately $1.0 billion.

The Australian Wheatstone LNG and Balnaves oil component of the transaction successfully closed on 2 April 2015 for a total cost of $2.817 billion, including a closing adjustment of $567 million, Woodside said adding that the component of the transaction relating to the Kitimat LNG project interests in Canada is expected to close next week, at an expected cost of approximately $854 million, which would include a closing adjustment of $354 million.

Woodside now has a 13% interest in the Wheatstone LNG Project and a 65% interest in the Julimar-Brunello upstream gas development, with near-term production and a 65% interest in the Balnaves oil project, with immediate production.

Under the terms of the Kitimat LNG project Sale and Purchase Agreement, Woodside will acquire a 50% interest in the Kitimat LNG project, including approximately 320,000 net acres in the Horn River and Liard Basins.