Apache Completes Sale of Egyptian Assets to Sinopec

Apache Corp. (NYSE, Nasdaq: APA) has completed its previously disclosed sale of a one-third minority participation in its Egypt oil and gas business to Sinopec International Petroleum Exploration and Production Corp. After customary closing adjustments, Apache received $2.95 billion in cash.

Apache will continue to operate the Egypt upstream oil and gas business. With this transaction, Apache has completed $7 billion in asset sales in the process of rebalancing its portfolio toward assets with predictable growth rates and attractive rates of return.

Pro forma for the partnership with Sinopec, the previously completed sale of Gulf of Mexico shelf assets and previously disclosed asset sales in Canada, Apache’s third-quarter 2013 production from North American onshore assets would have comprised approximately 56% of total production, up from 32% in 2009. Also on a pro forma basis, Egypt’s contribution would have declined from 26% to 16% during the same interval.

Source: Oil & Gas Financial Journal