Tuesday, July 20, 2010

Apache (NYSE:APA), Chevron (NYSE:CVX), KUFPEC in KOGAS Deal

Chevron (NYSE:CVX), Apache (NYSE:APA) and Kuwait Foreign Petroleum Exploration Co (KUFPEC), have made a deal with Korea Gas Corporation for the purpose of acquiring liquefied natural gas.

The liquefied natural gas will be acquired from Australian-based Wheatstone project in Western Australia, according to the companies involved.

KUFPEC and Apache, who have equity stakes in the fields which supply Wheatstone, have plans to sell 5 percent of those stakes.

KOGAS has committed to acquiring 1.5 million tons of liquefied natural gas annually, with 75 percent of the gas provided by Chevron, which operates Wheatstone, and close to 25 percent from KUFPEC and Apache.

The assets being sold by Apache and KUFPEC are from the Julimar and Brunello fields, which account for the 5 percent mentioned above. When completed, KOGAS will have a 5 percent stake in the overall Wheatstone project.

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