Monday, April 11, 2011

BHP expected to put in $49 bn bid for Woodside!!!



BHP Billiton Ltd. (BHP) will make a A$46 billion ($48.5 billion) bid for the Australian oil and gas producer. BHP is in talks to buy Royal Dutch Shell Plc (RDSA)’s 24 percent stake in Woodside and make a full takeover offer. BHP would swap some of Woodside’s assets, including the Sunrise natural-gas field, for Shell’s holding.

Woodside shares have risen from this year’s March 15 low to A$47.26 on April 8 on speculation of a bid from BHP and an increase in gas demand following Japan’s nuclear crisis. BHP and Tokyo-based Mitsui & Co. and Mitsubishi Corp. may be potential buyers of Shell’s stake or of the entire company, Credit Suisse Group AG said in an April 7 report.

“If BHP buy the whole of Woodside and bolt it together with their own assets, I think they could look to make $3 or $4 billion worth of synergies out of this deal.

A $48.6 billion bid would represent a 23 percent premium to Woodside’s value, in line with the average premium paid for oil and gas assets worldwide in deals announced in the past 12 months.
While talks on Woodside have intensified in recent weeks, BHP is concerned that securing the support of Woodside’s management may be too costly.


Weighing the Acquisition



More than half of BHP’s assets are in Australia, where the resources industry is undergoing its biggest boom in a century as Chinese demand for coal and iron ore climbs. Company announced in February it is still considering acquisitions after completed takeovers in the mining industry reached $80.7 billion in 2010. Also BHP is left with $16 billion of cash due to surging prices for iron ore, copper and oil.

“Asian LNG prices are the highest in the world, and Australia, being in relatively close proximity to Asia, acquisition would put BHP in strong position to sell to that market.

Woodside acquisitions and divestitures 

Year
Heading
Deal Value ($MM)
2009
Woodside divests 51.55% interest in Otway project for $641m
641.31
2007
Petronas acquires Mauritanian assets of Woodside Petroleum for $418m
418
2008
Woodside Petroleum acquires Shell's North West Shelf, Australia, oil assets for $399m
398.5
2008
Woodside Petroleum wins bids for 10 GoM blocks
89.85
2010
Woodside Petroleum divests Sierra Leone and Liberia assets to Anadarko
65
2007
Apache acquires Woodside's interests in certain Australian properties for $65m
65
2008
Origin Energy acquires remaining 62.5% interest in offshore Australia permit from Woodside Petroleum for $12m
12.2
2007
Karoon Gas acquires Woodside's interest in Australian permit for $0.9m
0.9
2010
Woodside acquires remaining 50% interest in offshore Australian permit from Hess
2010
Woodside acquires 65% interest in offshore Western Australia permit
2010
PTTEP acquires 20% interest in three permits offshore Western Australia
2009
Korea Gas to acquire interest in three offshore Australian permits from Woodside
2008
Woodside Petroleum awarded three exploration permits offshore Australia
2008
Anadarko acquires 50% interest in two blocks offshore Sierra Leone from RepsolYPF and Woodside
2008
Anadarko acquires 65% interest in three blocks offshore Liberia
2008
Woodside Petroleum and Reliance farm into Pluspetrol's exploration block in Peru
2008
Woodside farms out interest in three Australian exploration permits to Mitsui and Toyota Tsusho Corp
2008
Toyota Tsusho Corp acquires 7.5% interest in offshore Australian permit from Woodside and BHP Billiton
2007
Tokyo Gas and Kansai Electric acquire 5% stake each in Australian permit from Woodside
2007
Tokyo Gas Co to acquire 5% interest in Australia exploration permit from Woodside Petroleum
2007
Eni acquires 40% stake in two Timor Sea oilfields from Woodside Petroleum
2007
Woodside and Hess awarded exploration permit offshore Australia
2007
Woodside Petroleum sells 40.45% stake in offshore PNG lease to Merrill Lynch
2007
Tap Oil acquires 8.2% interest in Australian exploration permit from Woodside
2007
Woodside and KNOC jointly awarded  exploration blocks offshore South Korea
2006
Woodside acquires 25% interest in nine Brazil exploration blocks from Repsol YPF
2006
Repsol YPF farms into Woodside's offshore Kenya blocks
2006
Santos acquires additional interest in Australia gas field from Woodside
2006
Woodside, Total and Japan Australia LNG awarded two Australia exploration blocks






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