Woodside wraps up Canadian asset buy

Woodside Petroleum has closed its $US854 million ($A1.1 billion) purchase of Apache Corporation’s interests in the Kitimat LNG project in Canada, a week after finalising the WA component of the sale.

Under the terms of the agreement, Woodside has acquired 50 per cent interest in the LNG project, including about 320,000 net acres in the Horn River and Liard basins.

Woodside said the purchase price included $US354 million in adjustments for reimbursement of net expenditures on the project, changes in working capital and other customary adjustments for the period between July 1 last year and closing.

The Wheatstone LNG and Balnaves oil component of the transaction was closed last Thursday.

The deal was announced in December last year, with Woodside to acquire Apache’s interests in the three projects for a total purchase price of $US2.75 billion.

The Australian Competition and Consumer Commission probed the deal over concerns that it could affect the supply of wholesale gas in the WA market and lead to higher gas prices.

But it was later cleared, with the ACCC saying Woodside would continue to face strong competition from other suppliers, including Apache, Chevron and Santos.

Yesterday, Business News reported Macquarie Capital and Brookfield Asset Management had agreed to buy Apache Corporation’s Australian oil and gas operations for $US2.1 billion, with the deal underpinned by a long-term gas sale agreement with Alcoa.

Woodside shares closed 2.3 per cent higher at $34.90 per share.