Apache exits Australian oil and gas market

Apache Corporation is selling its subsidiary Apache Energy Limited for $US2.1 billion, marking the exit of the company from Australia.

Apache announced it would off load the company to private equity funds managed by Macquarie Capital Group and Brookfield Asset Management.

The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary post-closing adjustments. The effective date of the sale is October 1, 2014.

With the announcement of this sale, Apache is fully exiting its exploration and production business in Australia.

Assets of Apache Energy Limited and its subsidiaries averaged production of approximately 49,000 barrels of oil equivalent per day in March. 

"Today's announcement represents a notable step in Apache's strategic portfolio repositioning,” chief executive John Christman said.

“Following the sale of our Australian assets, approximately 70% of Apache's production will come from North America onshore. Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cash flow.”

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