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Woodside Buys Apache's Interests in Wheatstone and Kitimat
= At US$2.75 billion =
Woodside Petroleum announced on December 16 that it entered into a binding transaction with Apache Corporation to buy all the interests held by Apache in Wheatstone LNG and Kitimat LNG for US$2.75 billion. The transaction is subject to regulatory approvals and is expected to complete by the first quarter of 2015.

The transaction includes, (i) a 13% interest in the Wheatstone LNG Project sand a 65% interest in the Julimar-Brunello upstream gas development and (ii) a 65% interest in the Balnaves oil project adjacent to the Brunello gas field, and (iii) a 50% interest in the Kitimat LNG Project, including approximately 320,000 acres in the Horn River and Liard Basins.

For Woodside, Wheatstone is its fifth LNG project, or the first one as a non-operator, in Australia after NWS, Pluto, Browse and Sunrise, and the second one in Canada after Grassy Point Project whose feasibility is currently being explored.

Construction at Wheatstone LNG had already started based on the final investment decision (FID) made in September 2011, and was 49% complete as of end-September 2014, including 2 trains of 8.9 million tonnes per year of LNG production.

On the other hand, no concrete schedule has been set yet for Kitimat LNG except that Chevron, the leading proponent of the project, said FID for the project will depend upon progress in marketing of LNG. This project aims to produce about 10 million tpy of LNG at the planned facilities in British Columbia.

With the participation by Woodside, the equity interest ownership in each project by company will be as follows: (Wheatstone LNG) Chevron: 64.136%, KUFPEC (Kuwait): 13.4%, Woodside: 13%, PE Wheatstone: 8%, Kyushu Electric Power: 1.464%, (Kitimat LNG) Chevron: 50%, Woodside: 50%.
last modified : Mon 22 Dec, 2014 [10:39]
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