Woodside has snapped up Apache’s share of the Wheatstone LNG and Balnaves oil interests off the coast of Western Australia, along with their Kitimat LNG project in Canada, for the measly sum of US$2.75 billion.
With the sale now complete, Woodside gets to take home:
• a 13% interest in the Wheatstone LNG Project and a 65% interest in the Julimar-Brunello upstream gas development.
• a 65% interest in the Balnaves oil project, with immediate production
• a 50% interest in the Kitimat LNG project, including approximately 320,000 acres in the Horn River and Liard Basins, adding a growth option in an emerging LNG province to Woodside’s development portfolio.
Woodside CEO Peter Coleman said the acquisition was a natural fit with Woodside’s current portfolio.
“We have taken a disciplined and patient approach to identifying the right growth investment. We are now in a position to take advantage of challenging market conditions and use cash reserves and existing debt facilities to
acquire very high quality assets.
“We are also retaining our previous guidance on dividends and we expect our credit ratings to be unchanged. Our capital commitments on both sanctioned projects and sustaining capital are expected to be at a low level of
approximately US$0.8 billion each year over the next three years,” Coleman said.
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