Woodside Petroleum Ltd. has entered into a binding transaction with Apache Corp. to acquire Apache’s Wheatstone LNG and Balnaves oil interests in Australia and its Kitimat LNG project interests in Canada, for an aggregate purchase price of $2.75 billion and an expected closing adjustment of approximately $1 billion.
The Australian Wheatstone LNG and Balnaves oil component of the transaction closed April 2 for a total cost of $2.817 billion, including a closing adjustment of $567 million. The closing adjustment represents reimbursement of Apache’s net expenditures in the Wheatstone LNG project, changes in working capital and net receipts from the Balnaves oil project between the effective date, July 1, 2014, and closing.
Under the terms of the Australian asset sale and purchase agreement (SPA), Woodside has acquired 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
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 $854 million, which would include a closing adjustment of $354 million.
Under the terms of the Kitimat LNG project SPA, Woodside will acquire a 50% interest in the Kitimat LNG project, including 320,000 net acres in the Horn River and Liard basins.