(MENAFN) US oil and gas firm Chevron Corp has agreed to acquire a 50 percent stake in Kitimat LNG project in Canada from Encana Corp and EOG Resources Inc, Reuters reported.
Chevron said it will buy Encana's and EOG's 30 percent stakes in the LNG-export project for an undisclosed price.
It will buy the two companies' interest in a pipeline serving the project, at Kitimat, 650 kilometers north of Vancouver, and will pay USD550 million for a half stake in 644,000 acres of exploration lands in the Horn River and Liard shale-gas fields owned by Apache Corp.
Apache in return will pay Chevron USD150 million to increase its stake in Kitimat LNG and associated lands to 50 percent.
Encana said the sale of its stake comes in line with its plan to focus on its core natural gas business and that the deal will reduce its future capital commitments while EOG will now focus on US crude oil production.
The acquisition is expected to close it the first quarter of 2013.
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