By Nathalie Tadena
Apache Corp. (APA) struck a deal with China Petroleum &
Chemical Corp. (0386.HK, 600028.SH, SNP), or Sinopec, under which
the U.S. exploration and production company will sell a 33% stake
in its Egypt oil and gas business for $3.1 billion.
Shares were up 3.1% at $81.09 after hours. Through the close,
the stock is down 6.7% over the past three months.
Apache said will continue to operate its Egypt upstream oil and
gas business. The partnership is expected to close in the fourth
quarter.
The company noted Thursday it has been rebalancing its portfolio
to better deliver the potential of its deep North America onshore
resource inventory.
Apache has been divesting itself of assets as it aims to shore
up its balance sheet after years of aggressive acquisitions. It
plans to use proceeds from these transactions to pay down debt and
repurchase shares. In July, Apache inked an agreement to sell its
shallow-water operations in the Gulf of Mexico for $3.75
billion.
Net production at Apache's Egypt operations averaged 100,000
barrels of oil and 354 million cubic feet of natural gas a day in
2012. Apache's exploration and production operations, which are
located in remote, unpopulated areas, remain unaffected by
political events in the region.
Earlier this month, Apache reported its second-quarter earnings
nearly tripled as it recorded higher production revenue and an
income-tax benefit, while expenses in the prior-year period were
sharply higher.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
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