Apache Corp. is exiting the Australian E&P business. The company announced April 8 an agreement to sell its Australian subsidiary, Apache Energy Ltd., to a consortium of private equity funds managed by Macquarie Capital Group Ltd. and Brookfield Asset Management Inc. for cash payment of $2.1 billion.

The transaction is expected to close mid-year 2015 and is subject to necessary government and regulatory approvals and customary post-closing adjustments.

Assets of Apache Energy Ltd. and its subsidiaries averaged production of approximately 49,000 barrels of oil equivalent per day in March.

The company said it will retain its 49% ownership interest in fertilizer producer Yara Pilbara Holdings Pty Ltd.

On April 2, Apache announced the completion of sale of its Wheatstone LNG project and related oil and natural gas properties to Woodside Petroleum Limited for $2.8 billion.

“Today’s announcement represents a notable step in Apache’s strategic portfolio repositioning,” said John J. Christmann, IV, CEO and president of Apache, in a statement April 8.

“Over the last five years, we have transitioned Apache's primary growth engine to North America onshore through the announcement or completion of approximately $17 billion of asset purchases and $17 billion of asset sales,” he continued.

“Following the sale of our Australian assets, approximately 70% of Apache’s production will come from North America onshore. Our robust North American position is complemented by our North Sea and Egyptian regions, which have an extensive inventory of prospects and assets that generate free cash flow."

Len Vermillion is group managing editor for Hart Energy's Oil and Gas Investor Australia.