B07 Oil and Gas Extraction

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

Sims’ threat to $100bn gas merger

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Original article by Perry Williams
The Australian Financial Review – Page: 1 & 12 : 18-Sep-15

The Australian Competition & Consumer Commission (ACCC) is concerned about the impact of the proposed Royal Dutch Shell-BG Group merger on the Australian gas market. ACCC chairman Rod Sims said on 17 September 2015 that the $US70 billion ($A98 billion) deal could lead to price rises and gas shortages. The ACCC believes that the merger "may" substantially lessen competition.

CORPORATES
ROYAL DUTCH SHELL PLC, BG GROUP PLC, ARROW ENERGY LIMITED, MANUFACTURING AUSTRALIA LIMITED, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Woodside takes takeover offer directly to Oil Search investors

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Original article by Perry Williams, Sarah Thompson
The Australian Financial Review – Page: 21 : 16-Sep-15

Woodside Petroleum’s rejected takeover bid for Oil Search was pitched at a premium of 14 per cent, but it will most likely need to increase this to at least 20 per cent before Oil Search will consider the bid. Meanwhile, Bank of America Merrill Lynch and Gresham – which are advising Woodside on the bid – have directly approached Oil Search shareholders regarding the offer.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, GRESHAM PARTNERS LIMITED, EXXONMOBIL CORPORATION, PAPUA NEW GUINEA. OFFICE OF THE PRIME MINISTER, NATIONAL PETROLEUM COMPANY OF PNG LIMITED, CITIGROUP PTY LTD

Rejected Woodside turns to PNG

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 18 : 15-Sep-15

Woodside Petroleum CEO Peter Coleman is expected to discuss the company’s takeover bid for Oil Search with the Papua New Guinean Government, which controls 10 per cent of the takeover target. Woodside offered one Woodside share for four Oil Search shares, but Oil Search rejected the offer as inadequate. Oil Search chairman Rick Lee said the company would consider any rival offer that offers fair value to shareholders.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, DEUTSCHE BANK AG, EXXONMOBIL CORPORATION

Oil Search to reject $11.6b deal after Woodside talks canned

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Original article by Perry Williams
The Australian Financial Review – Page: 15 : 14-Sep-15

Woodside Petroleum’s takeover offer for Oil Search represents a 14 per cent premium to the target’s current share price, but Oil Search is likely to seek a premium of 25-30 per cent. The top executives of both groups had arranged a meeting to discuss the bid on 13 September, but Oil Search subsequently postponed it. The company is expected to formally reject the four-for-one share offer, which has an implied value of $A7.65 per share.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, GRESHAM PARTNERS LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Woodside’s Oil Search bid criticised

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 18 : 11-Sep-15

Perennial Investment Partners’ Lee Mickelburough and Simon Mawhinney of Allan Gray Australia are among the fund managers who have doubts about Woodside Petroleum’s $A11.6bn takeover bid for Oil Search. Mickelburough says there would be more merit in Woodside seeking to acquire "distressed" assets whose value has been impacted by the downturn in the crude oil price. Oil Search is likely to seek an improved offer from Woodside.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, PERENNIAL INVESTMENT PARTNERS LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WOOD MACKENZIE, SANTOS LIMITED – ASX STO

Woodside terms rejected by Oil Search

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Original article by Perry Williams
The Australian Financial Review – Page: 17 & 23 : 10-Sep-15

Shares in Woodside Petroleum rose by 0.81 per cent to $A29.90 on 9 September 2015. Takeover target Oil Search was down 0.63 per cent at $A7.85, which is the implied bid price based on the offer of one Woodside share for every four Oil Search shares. Oil Search directors are likely to meet shortly to discuss the bid, but they are unlikely to grant Woodside’s request for exclusivity in merger talks. Neil Beveridge of Bernstein says ExxonMobil could also be a potential bidder for Oil Search.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, BERNSTEIN AND ASSOCIATES, PAPUA NEW GUINEA. OFFICE OF THE PRIME MINISTER, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG

Woodside’s cheap trick

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Original article by Perry Williams, Sarah Thompson
The Australian Financial Review – Page: 1 & 6 : 9-Sep-15

Shares in Oil Search closed 17.4 per cent higher at $A7.90 on 8 September 2015, in response to an $A11.6bn takeover bid from Woodside Petroleum. The offer comprises one Woodside share for every four shares in Oil Search, which values the bid at $A7.65 per share based on current share prices. However, Credit Suisse believes that Woodside would need to lift its offer to around $A10 per share to gain Oil Search’s support for the bid. Woodside shares were $A0.92 lower at $A29.66.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PAPUA NEW GUINEA. OFFICE OF THE PRIME MINISTER, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, BG GROUP PLC, MERRILL LYNCH (AUSTRALIA) PTY LTD, GRESHAM PARTNERS LIMITED, HERBERT SMITH FREEHILLS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, ALLENS