Apache Corporation sold its interest in the Wheatstone LNG and Kitimat LNG projects Monday to Australia-based Woodside Petroleum for $2.75 billion.
Apache will also be reimbursed for $1 billion in net expenditure tied to the Wheatstone and Kitimat LNG projects.
The deal includes Apache’s equity ownership in its Australian subsidiary, Apache Julimar.
Apache Julimar holds a 13 percent interest in the Wheatstone LNG project and a 65 percent interest in the WA-49-L block that includes the Julimar/Brunello offshore gas fields and the Balnaves oil development.
Woodside will also acquire Apache’s 50 percent stake in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in British Columbia, Canada.
The transaction is effective as of June 30, 2014 and is expected to close in the first quarter of 2015.
Houston-based Apache expects to net $3.7 billion from the sale.
Apache will continue to hold upstream acreage offshore Western Australia in the Carnarvon, Exmouth, and Canning basins along with related hydrocarbon reserves and production.
The company will also retain its 49 percent ownership interest in Yara Holdings Nitrates and 10 percent interest in the related ammonium nitrate plant.
“Today’s announcement marks the successful completion of one of our primary strategic goals of exiting the Wheatstone and Kitimat LNG projects,” Apache chairman, CEO and president G. Steven Farris said.