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PERTH (miningweekly.com) – International oil major Apache Corporation has taken the decision to divest of its Australian subsidiary Apache Energy in a deal valued at $2.1-billion.
The transaction with a consortium of private equity funds signalled the exit of Apache from its Australian exploration and production business, which averaged a production of around 49 000 bbl/d of oil equivalent, during the month of March.
"Today's announcement represents a notable step in Apache's strategic portfolio repositioning. Over the last five years, we have transitioned Apache's primary growth engine to North America onshore through the announcement or completion of approximately $17-billion of asset purchases and $17-billion of asset sales,” said Apache CEO and president John Christmann.
Apache’s exit of the Australian business followed from the December $2.75-billion sale of its 13% share in the Wheatstone liquefied natural gas (LNG) project, its Balnaves oil interest, and its Kitimat LNG project, in Canada, to ASX-listed Woodside.
“Following the sale of our Australian assets, approximately 70% of Apache's production will come from North America onshore. Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cash flow," said Christmann.
Apache would retain its 49% interest in fertiliser producer Yara Pilbara Holdings.