Apache Corporation Finalizes Deal with Chevron Canada to Build Kitimat LNG Project

Apache Corporation (NYSE:APA, NASDAQ:APA) they have finalized the deal with Chevron Canada Limited to build and operate the Kitimat LNG project.

As quoted in the press release:

Chevron Canada, a subsidiary of Chevron Corp (NYSE: CVX), and Apache Canada each have become a 50 percent owner of the Kitimat LNG plant, the Pacific Trail Pipelines and 644,000 gross undeveloped acres in the Horn River and Liard basins. After a brief transition period, Chevron Canada will assume operatorship of the LNG plant and the pipeline. Apache Canada increased its ownership in the LNG plant and pipeline from 40 percent and will operate the upstream assets. Apache’s net proceeds from the transaction were $405 million.

Apache’s Chairman and CEO, G. Steven Farris, said:

With Chevron’s LNG experience and Apache’s upstream track record, this team is ideally suited to move this project forward toward delivering the tremendous resources at Liard and Horn River to meet Asia’s growing demand for LNG.

To view the full press release, click here.