✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

UPDATE 1-Woodside sees deal activity picking up in oil and gas

Published 20/10/2016, 01:48 pm
© Reuters.  UPDATE 1-Woodside sees deal activity picking up in oil and gas
SHEL
-
KAR
-
WDS
-
NG
-

* Woodside still looking for acquisitions within $1 bln

* Chasing oil stakes with production within 0-5 years (Adds CFO comments)

By Sonali Paul

MELBOURNE, Oct 20 (Reuters) - The environment for getting deals done in oil and gas is better now than it was a year ago as sellers have lowered their expectations, Woodside Petroleum's WPL.AX Chief Financial Officer Lawrie Tremaine said on Thursday.

Woodside, Australia's biggest independent oil and gas producer, has announced two deals over the past four months together worth up to $830 million, picking up stakes in a major oil find off Senegal and undeveloped gas fields off Australia.

It is working on more deals within the $1 billion range, Tremaine said.

"We're out there working M&A. We think the environment's probably a little more positive today than it was 12 months ago," he told Reuters in an interview.

"My view is that price expectations of sellers have come in a little bit, and so we're starting to see some deals actually get done, with Senegal and Scarborough being two good examples of that."

Tremaine declined to comment on whether Woodside would look at picking up a stake in a Malaysian liquefied natural gas plant that Royal Dutch Shell RDSa.L is reported to be selling, or whether it would be interested in teaming up with Karoon Gas KAR.AX to acquire stakes in the Bauna and Tartaruga Verde oil fields off Brazil.

However he said boosting the company's oil reserves through acquisitions remains a priority, especially as Woodside sees global oil markets going into deficit in the long term.

"We're focused on near term production in that zero to five year (timeframe). So if something delivers in that range it'll probably be of interest to us, particularly if it's oil," Tremaine said.

Brazil's Petrobras announced this month that it was in talks with Karoon Gas to sell its 100 percent stake in the Bauna field, which is already producing, and a 50 percent stake in the deepwater Tartaruga Verde project.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.