Sept 14 (Reuters) - Woodside Petroleum Ltd WPL.AX :
* Update on Woodside proposal to Oil Search Limited WPL.AX
* Notes today's announcement by Oil Search Limited rejecting woodside's 3 September 2015 merger proposal
* "Surprised and disappointed that the board of Oil Search has rejected the proposal without meeting with Woodside to understand the benefits "
* The proposal implies a material premium to all relevant trading periods prior to initial media speculation of a potential approach by Woodside to Oil Search
* Believes the proposal would create the regional Oil and gas champion for both papua new guinea and Australia
* Source text for Eikon ID:nASX4jlb1g
*