Woodside seals Apache deal
UPDATE 1.20pm: Woodside Petroleum has completed the purchase of Apache's stakes in the Wheatstone LNG and Balnaves oil projects, the Perth company said today.
The closure news is in line with Woodside's stated target to settle the deal, first announced in December, by March 31.
A third plank of the deal, to buy Apache's half-stake in the Kitimat LNG development in Canada, is expected to close next week.
Woodside said the Wheatstone and Balnaves acquisition had cost $US2.8 billion when factoring in a closing adjustment of $US567 million to reflect changes in cash movements since the two sides initially agreed to terms in July. The adjustments reflect Apache's subsequent additional investment in Wheatstone's development and oil receipts from Balnaves.
Woodside said the Kitimat deal would cost $US854 million, including a closing adjustment of $US354 million.
The total cost of the deal including adjustments would be $US3.67 billion, just below Woodside's guidance of about $US3.75 billion.
Woodside said it would update its 2015 production target, investment expenditure outlook and oil and gas reserves, to reflect the acquisitions, once the Kitimat deal settled.
The Apache deal leaves Woodside with a 13 per cent stake in the Chevron-operated Wheatstone LNG development near Onslow and operatorship and a 65 per cent stake in the Balnaves oil project in the Carnarvon Basin.
Kitimat is also operated by Chevron.
Shares in Woodside were up 27 cents to $34.15 at the close.
