Woodside completes Kitimat LNG acquisition for $854M

Woodside Petroleum Ltd. has entered into a binding transaction with Apache Corp. to acquire Apache’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 $1 billion.

The Australian Wheatstone LNG and Balnaves oil component of the transaction closed April 2 and was subsequently announced to the ASX.

The component of the transaction relating to the Canadian Kitimat LNG project closed April 10 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, July 1, 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, adding a growth option in an emerging LNG province to Woodside’s development portfolio.

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