Apache to sell stake in Egypt to Sinopec for $3.1 billion
BY NATHALIE TADENA
HOUSTON -- Apache struck a deal with Sinopec, under which the United States exploration and production company will sell a 33% stake in its Egypt oil and gas business for $3.1 billion.
Apache said will continue to operate its Egypt upstream oil and gas business. The partnership is expected to close in Q4.
The company noted it has been rebalancing its portfolio to better deliver the potential of its deep North America onshore resource inventory.
Apache has been divesting itself of assets as it aims to shore up its balance sheet after years of aggressive acquisitions. It plans to use proceeds from these transactions to pay down debt and repurchase shares. In July, Apache inked an agreement to sell its shallow-water operations in the Gulf of Mexico for $3.75 billion.
Net production at Apache's Egypt operations averaged 100,000 barrels of oil and 354 MMcfd of natural gas in 2012. Apache's exploration and production operations, which are located in remote, unpopulated areas, remain unaffected by political events in the region.
Apache reported its Q3 earnings nearly tripled as it recorded higher production revenue and an income tax benefit, while expenses in the prior year period were sharply higher.
Dow Jones Newswires