Brookfield and Macquarie Capital Consortium to purchase Apache WA oil and gas assets
09 April 2015
A consortium comprised of private equity funds managed by Brookfield Asset Management Inc. (Brookfield) and of Macquarie Capital, a division of Macquarie Group Limited today announced an agreement to acquire Apache Corporation’s Western Australian oil and gas assets for US$2.1 billion. This acquisition will form the foundations of a new intermediate oil and gas producer established by the Brookfield and Macquarie Capital Consortium.
The assets being acquired by the Brookfield and Macquarie Capital Consortium through the transaction include:
Brookfield and Macquarie Capital will jointly manage and each initially hold a 50 per cent investment in the new vehicle. The business will continue to have a strong focus on developing and supporting the growth of the Western Australian domestic gas market and consistent with this, a long term gas supply agreement for the initial supply of 120 terajoules per day of natural gas, commencing in 2020 has been entered into with Alcoa of Australia. This long term contract with Alcoa will underpin the Brookfield and Macquarie Capital Consortium’s commitment of future capital to the business’s gas assets.
The transaction is subject to necessary government and regulatory approvals.
Kate Vidgen, Executive Director, Macquarie Capital said “We recognise and place a high value on the partnerships that have been developed over many years with customers, the Western Australian Government and the community. A key focus of the business going forward will be to continue to develop these long term partnerships with high levels of alignment, such as has been achieved with Alcoa of Australia”.
Len Chersky, Head of Private Equity for Brookfield in Australia said “The Consortium of Brookfield and Macquarie Capital has worked cohesively to bring together this exciting transaction. This portfolio provides strong underlying cashflows via its contracted domestic gas portfolio, production flexibility and a great platform for growth, organically and through market consolidation, led by the strong local management team.”
Apache Australia Managing Director and CEO of the new entity, Mr Brett Darley said he was excited to lead the transformation of Apache’s Australian assets and interests. “With a record of exploration and production excellence spanning more than two decades in Australia, our people are well placed for this important new chapter as a significant Australian oil and domestic gas company” he said.
A consortium comprised of private equity funds managed by Brookfield Asset Management Inc. (Brookfield) and of Macquarie Capital, a division of Macquarie Group Limited today announced an agreement to acquire Apache Corporation’s Western Australian oil and gas assets for US$2.1 billion. This acquisition will form the foundations of a new intermediate oil and gas producer established by the Brookfield and Macquarie Capital Consortium.
The assets being acquired by the Brookfield and Macquarie Capital Consortium through the transaction include:
- Apache’s interest in operated gas fields of Reindeer, John Brookes and Halyard-Spar and the non-operated interest in the BHP Billiton operated Macedon field;
- Apache’s interest in operated oil fields at Coniston-Novara, Van Gogh and Stag and the non-operated interest in the BHP Billiton operated Pyrenees area;
- interests in gas processing facilities and associated infrastructure at Devil Creek, Varanus Island and Macedon; and
- all of Apache’s upstream acreage in the Carnarvon, Exmouth and Canning basins along with related hydrocarbon reserves, resources and production.
Brookfield and Macquarie Capital will jointly manage and each initially hold a 50 per cent investment in the new vehicle. The business will continue to have a strong focus on developing and supporting the growth of the Western Australian domestic gas market and consistent with this, a long term gas supply agreement for the initial supply of 120 terajoules per day of natural gas, commencing in 2020 has been entered into with Alcoa of Australia. This long term contract with Alcoa will underpin the Brookfield and Macquarie Capital Consortium’s commitment of future capital to the business’s gas assets.
The transaction is subject to necessary government and regulatory approvals.
Kate Vidgen, Executive Director, Macquarie Capital said “We recognise and place a high value on the partnerships that have been developed over many years with customers, the Western Australian Government and the community. A key focus of the business going forward will be to continue to develop these long term partnerships with high levels of alignment, such as has been achieved with Alcoa of Australia”.
Len Chersky, Head of Private Equity for Brookfield in Australia said “The Consortium of Brookfield and Macquarie Capital has worked cohesively to bring together this exciting transaction. This portfolio provides strong underlying cashflows via its contracted domestic gas portfolio, production flexibility and a great platform for growth, organically and through market consolidation, led by the strong local management team.”
Apache Australia Managing Director and CEO of the new entity, Mr Brett Darley said he was excited to lead the transformation of Apache’s Australian assets and interests. “With a record of exploration and production excellence spanning more than two decades in Australia, our people are well placed for this important new chapter as a significant Australian oil and domestic gas company” he said.
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