Australian LNG player, Woodside has approached Oil Search of Papua New Guinea with an A$11.6 billion ($8 billion) all-share takeover plan.
“Woodside confirms that it provided Oil Search a confidential and non-binding proposal to merge through a scheme of arrangement under the Papua New Guinea Companies Act. Woodside is currently engaging with Oil Search in relation to the proposal,” the company said in a statement on Tuesday.
Under the proposal, Oil Search shareholders would receive all scrip consideration of 0.25 Woodside shares for every Oil Search share and become shareholders in the combined entity.
Oil Search has a 29 percent stake in the US$19 billion PNG LNG project which came onstream in the first half of 2014.
“While Oil Search will consider the proposal, it should be noted that Oil Search has a material equity position in the world class PNG LNG project and attractive, low cost, LNG development opportunities, including the PNG LNG train 3 expansion and the Papua LNG project,” Oil search said.
The proposal is subject to Papua New Guinea regulatory approval, completing satisfactory due diligence and other customary conditions.
LNG World News Staff; Image: Oil Search