Woodside Closes Purchase of Apache's Stakes in Australian Upstream Assets

Woodside Petroleum Limited reported Thursday that in December 2014 the company entered into a binding transaction with Apache Corporation to acquire Apache’s Wheatstone LNG and Balnaves oil interests in Australia 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 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, Woodside has acquired:

  • a 13 percent interest in the Wheatstone LNG Project and a 65 percent interest in the Julimar-Brunello upstream gas development, with near-term production; and
  • a 65 percent 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 approximately $854 million, which would include a closing adjustment of $354 million.

Under the terms of the Kitimat LNG project Sale and Purchase Agreement, Woodside will acquire a 50 percent 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.

Guidance on the impact of closing on Woodside’s 2015 Production range, investment expenditure outlook and reserves as at Dec. 31, 2014 will be issued in the period subsequent to closing of the Kitimat LNG component.

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