Apache is selling its stake in two liquefied natural gas projects to Woodside Petroleum Ltd. for $2.75 billion.
The Houston company is selling its ownership in Australian subsidiary Apache Julimar Pty. Ltd. — which owns a 13 percent stake in the Wheatstone LNG project and a 65-percent interest in the area that includes the Julimar/Brunello offshore gas fields and the Balnaves oil development. The deal also includes Apache's 50 percent stake in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in Canada.
Apache anticipates net proceeds of about $3.7 billion. That includes its expenses between June 30 and the transaction's closing date in the first quarter. The company may use proceeds to lower debt, buy back stock or for other purposes.