viewWoodside Petroleum Limited

Woodside Petroleum buys oil, liquefied natural gas interests from Apache


Woodside Petroleum (ASX:WPL) is acquiring a package of oil and liquefied natural gas interests in Australia and Canada from Apache Corporation (NYSE:APA) for US$2.75 billion (A$3.35 billion).

These interests are immediately accretive to net profit after tax, earnings per share and operating cash flow.

It also comes amidst a 40% fall in oil prices over the last six months.

Under the agreement, Woodside will acquire:

- A 13% interest in the Wheatstone LNG Project near Onslow, Western Australia, and a 65% interest in the Julimar-Brunello upstream gas development, with a near-term production profile;
- A 65% interest in the Balnaves oil project in the Northern Carnarvon Basin offshore Western Australia, with immediate production; and
- A 50% interest in the Kitimat LNG project in British Columbia, Canada, 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.

Taken together, the interests will increase the company’s Proved Reserves by 19% to 1,358 million barrels of oil equivalent (MMboe).

The purchase price is fully funded by its existing cash and debt. It is expected to close at the end of the first quarter of 2015.


Wheatstone LNG is currently under development as an 8.9 million tonne per annum (WPL:1.16Mtpa) LNG export project.

It is operated by Chevron (NYSE:CVX) and includes a 200 terajoule per day domestic gas plant.

The project is currently 49% complete with first LNG expected in later 2016.

Julimar-Brunello has Proved and Probable Reserves (2P) of 279MMboe and will supply gas to the Wheatstone project.

Balnaves is a light oil field that commenced production in August 2014 and has 2P Reserves of 9.8 million barrels of oil.

The Chevron-operated Kitimat LNG project is a proposed 10Mtpa project that will source gas from the Horn River and Liard basins.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Woodside Petroleum Limited

Price: 23.09 AUD

Market: ASX
Market Cap: $22.05 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



archTIS poised for strong growth as they look at multiple sectors for technology

archTIS LTD (ASX: AR9) CEO and Executive Director Daniel Lai joined Steve Darling from Proactive to share his direction for the company as they look to branch out with their technology. Lai telling Proactive some of the contracts they have signed including their first in the Education/Space...

3 hours, 19 minutes ago

2 min read