B07 Oil and Gas Extraction

Botten unfazed by overtures from Woodside

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 29-Oct-15

Oil Search CEO Peter Botten says the group’s healthy balance sheet and strong growth prospects means it can focus on expanding its business rather than the spurned takeover offer from Woodside Petroleum. Botten adds that Oil Search would be open to a takeover offer that was appropriately priced, and he anticipates further merger activity in the oil and gas sector. He also forecasts that the oil price will remain at around its current level in the near-term.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, MARUBENI CORPORATION

Woodside claims misreporting, keeps door open for Oil Search

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 28-Oct-15

Woodside Petroleum is believed to have no immediate plans to sweeten its $A11.6bn takeover offer for Oil Search, but it may be amenable to doing so. CEO Peter Coleman has indicated that the offer is "fair and fully priced", although Woodside has advised that Dow Jones Newswires incorrectly reported that he had also said that Woodside has no intention of increasing the offer.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, DOW JONES NEWSWIRES, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, KIMA CAPITAL

Santos rejects Scepter’s $7bn takeover bid

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Original article by Matt Chambers
The Australian – Page: 21 & 24 : 23-Oct-15

Shares in oil and gas producer Santos closed 16 per cent higher at $A6.32 on 22 October 2015, in response to a takeover approach from Scepter Partners. The Bermuda-based private equity firm’s $A7.14bn non-binding offer is pitched at $A6.88 per share, which has been described as "opportunistic" by Santos. Romano Sala Tenna of Katana Asset Management agrees with this assessment, although Mark Samter of Credit Suisse believes that Scepter’s offer represents good value for Santos investors.

CORPORATES
SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, KATANA ASSET MANAGEMENT LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HSBC HOLDINGS PLC, GLENCORE PLC, XSTRATA PLC, VODAFONE GROUP PLC, BLACKSTONE ADVISORY PARTNERS ASIA, CITIGROUP PTY LTD

Total, Petronas on lookout for local bargains

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 19-Oct-15

France-based Total’s investments in Australia include stakes in the Gladstone and Ichthys LNG projects. Australian MD Petter Undem says Total is interested in acquisitions in the local oil and gas sector, including a desire to become the operator of an LNG project rather than just a minority stakeholder. Malaysia-based Petronas – which also has a stake in the Gladstone project – has indicated that it too is keen to pursue acquisitions in Australia.

CORPORATES
TOTAL SA, TOTAL E&P AUSTRALIA, PETROLIAM NASIONAL BERHAD, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, INPEX CORPORATION, ICHTHYS LNG PTY LTD, INTEROIL CORPORATION, CENTRAL PETROLEUM LIMITED – ASX CTP, PROGRESS ENERGY INCORPORATED

Analysts wary of Woodside Petroleum hiking Oil Search offer price

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Original article by Brian Robins
The Australian Financial Review – Page: 15 : 16-Oct-15

Woodside Petroleum’s revenue rose by 21 per cent to $US1.09bn ($A1.5bn) in the September 2015 quarter, although it fell by 44.6 per cent year-on-year due to the impact of the lower crude oil price. Production was 26 per cent higher than the June quarter, at 25.3 million barrels of oil equivalent. Meanwhile, some analysts have downplayed the potential for Woodside to increase its takeover offer for Oil Search.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, MACQUARIE GROUP LIMITED – ASX MQG, GMP SECURITIES LP, CHEVRON CORPORATION

Santos slashes 200 jobs to rein in costs

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 : 13-Oct-15

Listed oil and gas producer Santos has announced further job cuts, after it revealed plans to retrench 565 employees in August 2015. Santos intends to shed an additional 200 employees, with the bulk of the job cuts to be at its head office in Adelaide. The job losses are part of a cost-reduction strategy, with Santos aiming to achieve cost savings totalling $A180m by the end of 2015. Santos shares closed $A0.04 lower at $A5.93 on 12 October.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, CNOOC LIMITED, PETROCHINA COMPANY LIMITED, SINOPEC CORPORATION, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Oil price may determine Woodside play

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 9-Oct-15

Crude oil is currently trading at around $US50 per barrel, and Woodside Petroleum’s chances of striking a deal with takeover target Oil Search are likely to be enhanced if the price of crude remains low. Woodside CEO Peter Coleman is reluctant to increase the $A11.6bn bid as it would be earnings dilutive, although the group may potentially be willing to accept such an outcome in the short-term in order to secure a deal.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, ORD MINNETT GROUP LIMITED, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Woodside urges South Korea to back Perth LNG project

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 6-Oct-15

The future of the proposed Browse LNG project in Western Australia is uncertain, because of the depressed oil price. Woodside Petroleum wants South Korea to increase its engagement in the project. Reinhardt Matisons, executive vice-president for marketing at Woodside, told South Korean business leaders on 2 October 2015 that the nation has an important role to play in terms of "cost reductions and LNG purchases".

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SAMSUNG HEAVY INDUSTRIES COMPANY LIMITED, ROYAL DUTCH SHELL PLC, PETROCHINA COMPANY LIMITED, MIMI, MITSUI AND COMPANY LIMITED, MITSUBISHI AUSTRALIA LIMITED

Oil Search bid is fully priced, says Coleman

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 5-Oct-15

Woodside Petroleum has ruled out increasing its $A11.6bn takeover offer for Oil Search, with CEO Peter Coleman arguing that the offer represents full value. He says increasing the offer would be dilutive for Woodside shareholders, and he doubts that a rival bidder will emerge with a higher offer for Oil Search. Coleman adds that some of Oil Search’s largest shareholders have expressed interest in discussing the bid with Woodside.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, BHP BILLITON LIMITED – ASX BHP, KPMG AUSTRALIA PTY LTD, INTERNATIONAL PETROLEUM INVESTMENT COMPANY, CAPITAL GROUP INCORPORATED, PAPUA NEW GUINEA. OFFICE OF THE PRIME MINISTER, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA-KOREA BUSINESS COUNCIL

Santos says interest in assets reflects strength

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Original article by Perry Williams
The Australian Financial Review – Page: 15 & 20 : 22-Sep-15

The share price and market capitalisation of oil and gas group Santos has fallen sharply in the last year. However, Santos executive James Baulderstone says the group has quality assets that are not being valued appropriately by the market. He adds that Santos has been pleased with the indicative proposals it has received from potential buyers of its assets, and he forecasts that the crude oil price will eventually rebound.

CORPORATES
SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, TOTAL SA, INPEX CORPORATION, ALLIANCEBERNSTEIN HOLDING LP, GLADSTONE LNG PTY LTD, CITIGROUP PTY LTD, ROYAL DUTCH SHELL PLC, BG GROUP PLC, WOOD MACKENZIE