Under the agreement, Apache will sell its interest in its Australian subsidiary, Apache Julimar, which owns a 13% stake in the Wheatstone LNG project and a 65% interest in the WA-49-L block, which includes the Julimar/Brunello offshore gas fields and the Balnaves oil development.
Woodside Petroleum will also acquire Apache’s 50% stake in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in British Columbia, Canada.
Apache has also agreed to reimburse for its net expenditure in the Wheatstone and Kitimat LNG projects between 30 June 2014, and closing and this amount is estimated to be approximately $1bn.
Apache chairman, chief executive officer and president Steven Farris said: "We look forward to the redeployment of the proceeds from this sale, which may be used to reduce debt, repurchase shares and to pursue other opportunities that enhance our asset base and drive profitable production growth."
Based on current estimates, net proceeds of Apache, upon closing, are expected to be approximately $3.7bn.
Scheduled to be completed in the first quarter of 2015, the transaction is subject to necessary government and regulatory approvals.
Following completion of the transaction, Apache will hold upstream acreage offshore Western Australia in the Carnarvon, Exmouth, and Canning basins as well as related hydrocarbon reserves and production.
The company will also retain its 49% stake in Yara Holdings Nitrates and 10% interest in the related ammonium nitrate plant.
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