Apache finds buyer for stake in Kitimat LNG project

Apache has hooked Woodside Petroleum as a buyer for its stake in Kitimat LNG and Wheatstone LNG

Apache Corporation which had been seeking an exit from the Kitimat LNG as well as Wheatstone LNG in Australia is getting their wish with a confirmed deal between them and Woodside Petroleum.

Woodside has agreed to buy Apache’s stake in the projects for $2.75 billion.

Woodside will also pick up the tab for spending on the projects for between June 30 2014 and the closing date, which was not specified. Apache does say it is expected in the first quarter of 2015, and is subject to government and regulatory approvals. The estimate for those costs is $1 billion.

Apache’s share of the Kitimat LNG project is 50 per cent.

“Today’s announcement marks the successful completion of one of our primary strategic goals of exiting the Wheatstone and Kitimat LNG projects,” said Apache Chairman and CEO G. Steven Farris in a news release. I am proud of Apache’s legacy in advancing the Wheatstone and Kitimat LNG projects, and I am confident that Woodside’s participation will have a positive impact in seeing these world-class LNG facilities through to first production.”

The sale of the Kitimat LNG project, the company adds, is subject to “certain operator consents.”

Apache says that those “consents” refers to the “standard consent process afforded to the operator of the project, Chevron.”