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Good Oil Search article more details - jft310 - 04-23-2014
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Oil Search chief executive Peter Botten. Photo: Jim Rice
Oil Search chief executive Peter Botten has outlined aggressive liquefied natural gas expansion prospects for the company as speculation continues about takeover interest from Woodside Petroleum.
Mr Botten said on Tuesday that Oil Search was likely to be involved in two, if not three, additional LNG trains in Papua New Guinea in the next five years.
Oil Search's expansion prospects, which are in addition to its surge in output with the midyear start-up of the $US19 billion ($20.2 billion) PNG LNG venture, have been enhanced by its $US900 million investment in the large Elk-Antelope gas resource.
Mr Botten's prediction came despite a setback on Tuesday to Oil Search's bid to shore up its pre-emptive rights within the Elk-Antelope venture, which, it argues, were breached by a recent deal that saw French oil company Total join it and US-listed InterOil in the fields.
Gas from Elk-Antelope in the PRL15 permit is set to play a pivotal part in LNG development in PNG.
Oil Search had applied for an injunction in the PNG National Court of Justice to halt work by the PRL15 venture after completion of the Total transaction last month. One source said Oil Search had concerns about a drilling rig being used by the venture. But Justice J. Hartshorn dismissed the application and ordered Oil Search to pay InterOil's legal costs.
Oil Search remains in dispute with InterOil and Total over its pre-emptive rights in Elk-Antelope, to be resolved either in arbitration in London or, as sources say is more likely, direct commercial negotiations.
In Oil Search's quarterly report on Tuesday, Mr Botten was enthusiastic about Elk-Antelope, which could hold 7 trillion cubic feet of gas or more. ''This resource has the potential to underpin a world-scale, commercially attractive, LNG development,'' he said.
It is the large gas potential of Oil Search that is said to have attracted the attention of Woodside, which lacks near-term production growth in its portfolio with the deferment of its LNG expansion projects in WA.
A Woodside spokeswoman refused to comment.
An Oil Search spokeswoman was not aware of any approach from the Perth-based oil and gas player.
RE: Good Oil Search article more details - Palm - 04-23-2014
Interesting article. Time to move ahead OSH.
RE: Good Oil Search article more details - Libtardius Maximus - 04-23-2014
When did the OSH Woodside buyout rumors start?
RE: Good Oil Search article more details - Palm - 04-23-2014
About a year ago there were rumors that OSH could be a buy-out candidate by the likes of Shell, Total and Woodside.
RE: Good Oil Search article more details - Libtardius Maximus - 04-23-2014
Palm, I recall the rumor of OSH being bought out this past December by XOM just prior to IOC-TOT news and Botton himself stating possible buyout around the same time without mentioning the suitor. But it was always assumed to be XOM and maybe Shell but not Woodside.
Now allow me to indulge for a second. IOC management team is made up of ex-Woodside execs. I for one viewed them as a possible Trojan Horse to take over IOC, but it now seems possible that they were eyeballing OSH instead?
RE: Good Oil Search article more details - Palm - 04-23-2014
Here's one example of where Woodside was cited as looking at OSH:
"June 24, 2013- Oil Search (ASX: OSH) could be bought by Woodside Petroleum (ASX: WPL) for as much as US$13.1 billion according to analysts at company CIMB Securities. Oil Search is forecast to quadruple its energy production from 2015 as the PNG LNG project the company has a 29% stake in comes online. This production could fill a growth gap faced by Woodside in the medium-term brought about by delays to current projects Browse LNG and exploration in Israel.
Woodside is currently in a unique position. As one of Australia’s major oil and gas producers, along with the likes of BHP Billiton (ASX: BHP) and Santos (ASX: STO), Woodside has several significant growth projects under evaluation, but the long lead times before the company’s next set of projects come online means it faces a period of low capital expenditure and gushing cashflows from existing projects.
The strong cashflows are largely coming from the $14.9 billion Pluto LNG plant, which was successfully brought into production in April last year. With Pluto’s help, Woodside’s first quarter 2013 production increased by 55%, with sales up 50% and revenue up 21% to US$1.44 billion. With Pluto now completed, capital expenditure for the first quarter was down by 70%.
In response to the cash influx Woodside announced a special dividend of US$0.63 per share in April to distribute the earnings back to shareholders. But with the delays in upcoming projects Browse LNG and prospective exploration off the coast of Israel, an acquisition is seen by some analysts as a likely stop-gap measure to maintain growth.
According to a Bloomberg report, analysts at Commonwealth Bank (ASX: CBA) view Oil Search as being undervalued, stating that the current share price of $7.93 does not factor in the likely expansion opportunities of the PNG LNG project.
Oil Search had a market capitalization of $10.58 billion at the end of last week, so if an offer of US$13.1 billion (A$14.12 billion) was made it would represent a sizable premium to the current share price. But it could be a viable option given any new major projects for Woodside are at least five years away."
RE: Good Oil Search article more details - Libtardius Maximus - 04-23-2014
Nice catch Palm, thanks.
RE: Good Oil Search article more details - Tree - 04-23-2014
'Libtardius Maximus' pid='42406' datel Wrote:When did the OSH Woodside buyout rumors start?
I am retiring at the end of 2014 ya know. Why not just let XOM buy me out?
RE: Good Oil Search article more details - Libtardius Maximus - 04-23-2014
Palm,
This is one of my multiple recollections via our sage friend Gator. I have others yet lack the time to do the research.
http://shareholdersunite.com/mybb/showthread.php?tid=5853
RE: Good Oil Search article more details - Li'loilady - 04-24-2014
'jft310' pid='42403' dateline='<a href="tel:1398179 Wrote:
submit to redditEmail articlePrintReprints & permissionsOil Search chief executive Peter Botten. Photo: Jim RiceOil Search chief executive Peter Botten has outlined aggressive liquefied natural gas expansion prospects for the company as speculation continues about takeover interest from Woodside Petroleum.Mr Botten said on Tuesday that Oil Search was likely to be involved in two, if not three, additional LNG trains in Papua New Guinea in the next five years.Oil Search's expansion prospects, which are in addition to its surge in output with the midyear start-up of the $US19 billion ($20.2 billion) PNG LNG venture, have been enhanced by its $US900 million investment in the large Elk-Antelope gas resource.Mr Botten's prediction came despite a setback on Tuesday to Oil Search's bid to shore up its pre-emptive rights within the Elk-Antelope venture, which, it argues, were breached by a recent deal that saw French oil company Total join it and US-listed InterOil in the fields.Gas from Elk-Antelope in the PRL15 permit is set to play a pivotal part in LNG development in PNG.Oil search had applied for an injunction in the PNG National Court of Justice to halt work in the PRL 15 venture after the completion of the Total transaction last month. One source said Oil Search had concerns about a drilling rig being used by the venture. But Justice J. Hartshorn dismissed the application and ordered Oil Search to pay InterOil's legal costs.Oil Search remains in dispute with InterOil and Total over its pre-emptive rights in Elk-Antelope, to be resolved either in arbitration in London or, as sources say is more likely, direct commercial negotiations.In Oil Search's quarterly report on Tuesday, Mr Botten was enthusiastic about Elk-Antelope, which could hold 7 trillion cubic feet of gas or more. ''This resource has the potential to underpin a world-scale, commercially attractive, LNG development,'' he said.It is the large gas potential of Oil Search that is said to have attracted the attention of Woodside, which lacks near-term production growth in its portfolio with the deferment of its LNG expansion projects in WA.A Woodside spokeswoman refused to comment.An Oil Search spokeswoman was not aware of any approach from the Perth-based oil and gas player.
Thank God that injunction got tossed out of PNG court, and at no cost to IOC.
There's a tiny little tidbit from a PNGIndustrynews.net article today, Wednesday, April 23. The rest of the article is just repeat information. I might be the only one who didn't realize who the dispute was specifically with. This detail is not particularly material, but some legal eagles might find it interesting....or not.
"Oil Search had issued a notice of dispute to SPI InterOil Holdings, an entity of InterOil, in relation to the Elk-Antelope PRL 15 joint venture operating venture."
Hang in there, everybody.
Li'l