Apache to sell stake in Egyptian oil and gas business for $3.1 bln

Thu Aug 29, 2013 8:58pm EDT

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Aug 29 (Reuters) - Apache Corp said it would sell a 33 percent stake in its Egypt oil and gas business for $3.1 billion in cash to a unit of China Petrochemical Corp, scaling back its operations in the country amid the recent political unrest.

The deal with the unit, Sinopec International Petroleum Exploration and Production Corp, is subject to regulatory approvals and is expected to close during the fourth quarter, Texas-based Apache said in a statement.

Egypt is enduring the worst internal strife in its modern history, triggered by the army's July 3 overthrow of President Mohamed Mursi.

Apache had said previously that it was assessing the value of its Egyptian interests, which account for roughly a fifth of its global oil and gas production and 27 percent of its revenue last year.

Last month Apache also sold its Gulf of Mexico shelf assets for $3.75 billion to private equity firm Riverstone Holdings LLC in order to focus on growth from its U.S. onshore assets.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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