Apache Completes $2.95 Billion Egypt Partnership With Sinopec

Purchased one-third minority participation in Apache's Egypt oil and gas business.

Apache Corp. (NYSE, Nasdaq: APA) completed the sale of a one-third minority participation in its Egypt oil and gas business to Sinopec International Petroleum Exploration and Production Corp. for $2.95 billion in cash.

Apache will continue to operate the Egypt upstream oil and gas business.

"We welcome Sinopec as our new partner in Egypt; together, we will continue to deliver the tremendous hydrocarbon resources in the Western Desert at attractive rates of return," G. Steven Farris, Apache's chairman and CEO, said in the release. "We also look forward to working together in other parts of the world.

"With this transaction, Apache has completed $7 billion in asset sales in the process of rebalancing our portfolio toward assets with predictable growth rates and attractive rates of return," Farris said.

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 3Q 2013 production from North American onshore assets would have comprised 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.

Apache Corp. is an independent energy company that explores for, develops, and produces natural gas, crude oil, and NGLs. The company is based in Houston.