B07 Oil and Gas Extraction

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

$200b LNG plants not profitable

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Original article by Perry Williams
The Australian Financial Review – Page: 1 & 8 : 7-Sep-15

The International Energy Agency has questioned the viability of major Australian LNG projects, warning that they may not break even due to factors such as the downturn in the crude oil price and falling demand from Asia. The agency also believes that the proposed Browse, Sunrise and Scarborough projects may not go ahead. Energy forecaster Fereidun Fesharaki also has doubts about the profitability of Australian LNG projects.

CORPORATES
INTERNATIONAL ENERGY AGENCY WOODSIDE PETROLEUM LIMITED – ASX WPL ORIGIN ENERGY LIMITED – ASX ORG SANTOS LIMITED – ASX STO BHP BILLITON LIMITED – ASX BHP EXXONMOBIL CORPORATION ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT CHEVRON CORPORATION INPEX CORPORATION SINOPEC CORPORATION ROYAL DUTCH SHELL PLC AUSTRALIA PACIFIC LNG LIMITED CONTACT ENERGY LIMITED

Woodside aims to pounce on ‘crown jewels’

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 20-Aug-15

Low commodity prices may eventually force stressed companies to put their "crown jewels" on the market, at which time Woodside Petroleum will be ready to pounce, says CEO Peter Coleman. Meanwhile, he will not risk precious cash on lower quality assets. Despite reporting a 39 per cent drop in first half profits due to the collapse in oil and LNG prices, Woodside has little debt, making it well placed to take advantage of takeover opportunities.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BT AUSTRALIA PTY LTD, MACQUARIE EQUITIES LIMITED, APACHE CORPORATION, CHEVRON CORPORATION

Oil sector profits to be dented as early recovery hopes fade

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13/18 : 17-Aug-15

Woodside Petroleum, Santos and Origin Energy will continue to be under pressure to cut costs as the oil price is expected to remain low. The US benchmark crude has fallen to $US42.50 a barrel which is its lowest level since early 2009. The International Energy Agency believes oil markets will remain oversupplied until late 2016 or early 2017.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, MACQUARIE CAPITAL PTY LTD, INTERNATIONAL ENERGY AGENCY, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD