By Chelsey Dulaney
Apache Corp. has agreed to sell its stakes in two international
liquefied-natural-gas projects to Woodside Petroleum Ltd. for $2.75
billion, after coming under activist pressure this summer to
refocus its drilling operations on the U.S.
The stakes include a 13% interest in the Australian Wheatstone
liquid-natural gas project and a 50% interest in the Canadian
Kitimat liquid natural gas project, as well as accompanying
upstream oil and gas reserves.
In July, activist investor Jana Partners LLC began calling on
the oil and gas producer to sell off its international holdings to
drill exclusively on American soil. Jana had built a stake worth
more than $1 billion in the company.
Apache announced later that month that it would exit the
Australian and Canadian projects.
The company had planned a large expansion of its Australian oil
and gas operations over the next few years. The plans, which
coincided with its decision to sell $4 billion of its assets to
shore up its balance sheet, came as Australia's natural-gas sector
struggled with cost overruns and faced competition for Asian
liquefied-natural-gas customers' business from North America.
Apache had expected to spend billions of dollars in Western
Australia these past two years.
Apache said Monday that it expects to net $3.7 billion on the
deal, which is expected to close by March.
Apache said it could use the proceeds to reduce debt, repurchase
shares and grow its asset base.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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