LNG

Italian oil and gas major Eni and a key shareholder in global liquefied natural gas production projects has made a “significant’ natural gas discovery in East Kalimantan in Indonesia with the volumes likely headed for the onshore Bontang liquefaction and export plant.

May 19 (LNGJ) - Woodside shareholders voted to approve the proposed merger with the petroleum business of Anglo-Australian commodities group BHP at the AGM in Perth in Western Australia on May 19 where 98.66 percent of the votes submitted were in favour of the transaction. “Woodside expects completion of the Merger to occur on 1 June 2022. The new Woodside shares to be issued to or for the benefit of BHP shareholders are expected to commence trading on the Australian Securities Exchange on 2 June 2022,” said Woodside. 

   “Trading of Woodside American Depositary Shares on the New York Stock Exchange is expected to commence on 2 June 2022. Trading of Woodside shares on the main market for listed securities of the London Stock Exchange is expected to commence on 6 June 2022,” added the Perth-based company.

Woodside Petroleum, the leading Western Australian LNG operator, has applied to list its shares in the form of American Depositary Shares (ADSs) on the New York Stock Exchange and plans to also list its shares on the London Stock Exchange in connection with the proposed merger with the petroleum business of commodities giant BHP Group.

Anglo-Australian commodities company BHP and LNG plant operator Woodside Petroleum have worked out the final point for Woodside’s takeover of BHP’s oil and gas portfolio.

BHP told its shareholders that the completion of the merger was on track for June 2022, subject to satisfaction of conditions precedent including approval by Woodside shareholders.

The commodities giant said it was expected to receive 914.8 million newly issued Woodside shares at completion a dividend on Woodside shares would go to BHP shareholders.

BHP shareholders are expected to be entitled to one Woodside Share for every 5.5340 BHP shares they hold on the record date.

Based on Woodside’s share price of US$25.55 at 6 April 2022, the implied value of BHP’s subsidiary BHP Petroleum is US$23.4 billion.

Woodside will retain its primary listing on the Australian Securities Exchange, though the company was seeking a standard listing on the London Stock Exchange and an American Depositary Receipts (ADRs) program on the New York Stock Exchange on completion of the merger.

“A share sale facility will be in place for small BHP shareholders who elect to participate and for shareholders who are ineligible to receive Woodside Shares,” said BHP.

BHP said that all required regulatory and competition approvals have been obtained, other than the National Offshore Petroleum Titles Administrator (NOPTA) approval which is expected prior to completion.

Separate to the receipt of Woodside shares on completion, Woodside will also make a cash payment to BHP of approximately US$830 million in relation to cash dividends paid by Woodside between the merger’s effective date of 1 July 2021 and completion.

This represents the cash dividend that would have been received by holders of the Woodside shares.

BHP in turn will make a cash payment to Woodside for the net cash flow generated by BHP Petroleum between the merger’s effective date of 1 July 2021 and completion.

From the effective date to 31 December 2021 only, this amounts to approximately US$900M.

AGL Energy, the Australian utility whose plans for an LNG import terminal in the state of Victoria were thwarted by regulators, has rejected an unsolicited joint bid of over US$3.5 billion from Brookfield Asset Management of Canada and one of Australia’s wealthiest individuals.

Australian LNG plant operator Santos and Australian-listed energy company Oil Search, which has Papua New Guinea LNG and oil stakes and Alaskan oil assets, have extended their period of mutual due diligence regarding the proposed takeover of Oil Search by Santos in a deal worth A$8.40 billion (US$6.25 billion) to create a front-rank global energy company.

Oil Search, the Australian-listed company with liquefied natural gas interests in Papua New Guinea, has revealed it rejected an unsolicited takeover proposal from Santos of Australia, operator of the Gladstone plant in Queensland and Darwin LNG.