Hours after Shell clinched its massive $A91 billion bid for BG Group, there’s a second, much smaller deal, also involving Australia.
Apache Corp, the US independent under pressure from shareholders to return cash, has announced the sale of its remaining Australian assets to a group of investors led by Brookfield Asset Management of Canada and Macquarie Capital, an arm of Macquarie Group.
The price is $US2.1 billion and follows the settlement last week of Woodside’s purchase of other Apache oil and gas assets in Australia.
A separate deal by Woodside to buy Apache gas assets in Canada is expected to settle this week. The total price for the two deals is $US2.75 billion, but a final adjustment of around $US1 billion, making a total price of $US3.75 billion.
The latest sale is expected to settle mid-year, according to the statement this morning from Apache.
The sale of Apache Energy means Apache will have fully exited the exploration and production business in Australia.
Today’s deal covers assets of Apache Energy Limited and its subsidiaries averaged production of approximately 49,000 barrels of oil equivalent per day in March. The oil and gas producing assets are in Western Australia
“With the announcement of this sale, Apache is fully exiting its exploration and production business in Australia, but will retain its 49-percent ownership interest in fertilizer producer Yara Pilbara Holdings Pty Limited,” Apache CEO, John Christmann said in a statement.
“Following the sale of our Australian assets, approximately 70% of Apache’s production will come from North America onshore."
