Woodside Closes Kitimat LNG Deal

Woodside on Friday closed the deal to purchase Apache Corp’s interest in Kitimat LNG project.

In December 2014 Woodside entered into a binding transaction with Apache to acquire latter’s Australian Wheatstone LNG and Balnaves oil interests and Kitimat LNG project interests in Canada, for an aggregate purchase price of $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.

The component of the transaction relating to the Canadian Kitimat LNG project was closed for a purchase price of $854 million, including $354 million in adjustments for reimbursement of net expenditures on the project, changes in working capital and other customary adjustments for the period between the effective date, 1 July 2014, and closing.

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