Apache Corporation has announced plans to sell of part of its stake in a natural gas export terminal in Canada in an effort to cut costs of the project.
Chairman and chief executive Steven Farris told analysts the oil and gas producer wants to reduce its estimated £600million funding requirement on the Kitimat liquefied natural gas (LNG) project.
“We can’t afford that,” said Farris ahead of the Houston-based company’s investor meeting.
“We’ve had serious discussions with a number of buyers, all in Asian markets.”
Apache plans to reduce spending by almost 20% after selling more than £4.2billion in assets in an effort focus on prospects in North America, Farris said.
Drilling in Texas, New Mexico and Oklahoma will form the centerpiece of a £5.1billion spending plan 2014.
Operations in Egypt and the North Sea, which generate about £600million a year in cash, will help fuel growth in the US and Canada.