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
|
