Tue, Sep. 6, 11:29 AM
- Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) announced yesterday that it would pay as much as $400M for half of BHP Billiton’s (BHP +1.2%) interest in the Scarborough gas field off the Western Australia coast as part of a drive to boost its reserves.
- The deal will take Woodside’s net share of the Scarborough assets to ~2.6T cf of gas out of a total resource of 8.7T cf.
- Woodside says it will pay $250M to BHP when the deal is completed, which it expects by year-end, and another $150M if the companies decide to develop the Scarborough field, although Bernstein's Neal Beveridge says the structure of the deal suggests plenty of uncertainty over whether the project will move forward.
- The main Scarborough field, which boasts a proved and probable contingent resource of 6.9T cf, will continue to be operated by BHP partner ExxonMobil (XOM +0.6%).
Dec. 7, 2015, 10:27 PM
- Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) says it is abandoning its A$11.64B (US$8.46B) offer for Oil Search (OTCPK:OISHF), sending shares in the latter tumbling as much as 18% in Sydney trading.
- Woodside CEO Peter Coleman had sought a stake in Papua New Guinea’s liquefied natural gas industry, as projects there are seen as less costly than developments elsewhere and economically viable even after the oil price plunge.
- “Given the fall-off in crude pricing, it’s difficult to see Woodside raising the offer in this environment," Bernstein's Neil Beveridge tells Bloomberg. “M&A will come when companies are confident we’re at the bottom of the cycle. This signals that Woodside isn’t confident that we’re quite there yet.”
- Oil Search, which owns 29% of Exxon’s PNG LNG project, reiterates that Woodside proposal “grossly undervalued” the company; shares of Santos (OTCPK:STOSF), which also has a stake in PNG LNG, falls as much as 15% in Sydney.
Sep. 14, 2015, 7:50 AM
- As anticipated, Oil Search (OTCPK:OISHF) has rejected Woodside Petroleum’s (OTCPK:WOPEF, OTCPK:WOPEY) $8.1B takeover bid, as anticipated, saying the proposal undervalues its liquefied natural gas expansion plans in Papua New Guinea.
- Woodside may make a higher bid and needs to offer ~A$8.50/share to succeed, according to Sanford C. Bernstein analysts, after offering the equivalent of A$7.65/share.
- Exxon Mobil (NYSE:XOM) have been speculated as potential counter-bidders.
Sep. 9, 2015, 9:53 AM
- Oil Search (OTCPK:OISHF) will reject a demand by suitor Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) to hold exclusive talks as part of its A$11.6B takeover offer, potentially paving the way for Exxon Mobil (XOM +1.5%) to emerge as a rival bidder, Sydney Morning Herald reports.
- XOM is the operator and largest shareholder in Oil Search's Papua New Guinea liquefied natural gas project, and is said to have held an informal meeting with Oil Search CEO Peter Botten in the country yesterday.
- Macquarie analysts believe that XOM, as operator of PNG LNG, is unlikely to make any due diligence process easy for Woodside given sensitivities around early work it is performing on the P'nyang and Elk-Antelope gas fields; Bernstein's Neil Beveridge expects upward revisions to Woodside's offer for Oil Search and counter bids possibly from XOM, "who would be the most likely competitor."
Sep. 8, 2015, 4:03 AM
- Woodside Petroleum (OTCPK:WOPEF) has offered A$11.65B ($8.1B) in stock to acquire fellow Australian firm Oil Search (OTCPK:OISHF) in a deal that would imply a premium of 14% based on the latter's closing price on Monday.
- The thinking amongst analysts seems to be that given that Oil Search has an attractive liquefied natural gas project in Papua New Guinea, the proposal is too low.
- Sanford C Bernstein's Cristobal Garcia reckons a bidding war could break out that would pull in Total and Exxon Mobil.
Dec. 16, 2013, 11:28 AM
- Royal Dutch Shell’s (RDS.A, RDS.B) long-awaited sale of its $6.4B stake in Woodside Petroleum (WOPEF, WOPEY) may open the door for Asian buyers to grab a slice of Australia’s second-largest oil and gas producer, or even the whole company, Bloomberg speculates.
- Shell, which sees its 23% holding in Woodside as “increasingly non-core," may exit its stake as soon as next year; while Shell may opt to sell the stock back to Woodside and institutional investors, China’s Cnooc (CEO) and Sinopec (SNP) might pursue the stake or a full takeover.
- Government opposition to a foreign takeover may have eased since Shell was blocked in 2001, analysts say, and the company is more affordable after its multiple to cash flow has been more than cut in half since 2011.
May 1, 2012, 3:47 AM
Aussie oil producer Woodside Petroleum (WOPEY.PK) plans to sell a stake in its giant Browse natural gas project to Mitsui and Mitsubishi for $2B. The two Japanese firms will also work with Woodside to market LNG to the Asian market and to help Woodside raise money to finance the project. (PR)| May 1, 2012, 3:47 AM