Apache To Quit Gas Projects In Australia And Canada

Hess To Form MLP For North Dakota Oil, Gas Transport Assets
Apache says it plans to sell interests in two LNG projects as it sharpens the focus on developing North American shale fields.

Reuters

HOUSTON, July 31 (Reuters) - U.S. oil and gas company Apache Corp, under pressure from activist investor Jana Partners, said on Thursday it plans to sell interests in two liquefied natural gas (LNG) projects as it sharpens the focus on developing North American shale fields.

The move, a significant pullback from the LNG market, relieved investors worried about the potential project costs. Apache shares rose to their highest level in more than two years.

Apache reported that profits fell in the second quarter, but still topped expectations.

Apache said it intends to completely exit LNG projects - in which it partners with Chevron Corp - in Wheatstone in Australia and Kitimat in Canada. Apache is also evaluating its international assets for a potential spinoff to shareholders, outright sale or other options, Chief Executive Officer Steve Farris told analysts on a conference call.

"In our opinion, it makes sense that we reduce the size of our international assets," Farris said, noting that the company's North American and international units "are two different businesses."

Jana, which disclosed in June it had a $1 billion stake in Apache, has urged the Houston-based company to exit the Canadian and Australian projects and focus on drilling onshore in the United States.

Over the last year, Apache has sold $10 billion worth of assets to focus its drilling on more profitable and predictable shale oil wells in places like the Permian Basin and the Eagle Ford in South Texas.


123

View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Lead Process Engineer / Specialist
Expertise: Chemical Engineering|Construction Engineer|Gas Plant Operations
Location: Pittsburgh, PA
 
United States Williston: Cable Technician I-II
Expertise: Electrical Technician|Mechanical Technician
Location: Williston, ND
 
United States Williston: Test Technician I-II
Expertise: Instrumentation Technician|Mechanical Technician
Location: Williston, ND
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours