Woodside disappointed by Oil Search decision

Woodside has announced that it is “surprised and disappointed” that the Board of Oil Search Ltd has unanimously decided to reject its recent merger proposal.

In a statement, Woodside said that it had hoped that the Board of Oil Search would agree to meet in order to understand the benefits of the opportunity or negotiate the terms of a merger.

Under the proposal, Oil Search shareholders would have received all scrip consideration of 0.25 Woodside shares for every Oil Search share and represent a 31.7% shareholding in the combined entity.

The statement from Woodside read: “Woodside believes the proposal would create the regional oil and gas champion for both Papua New Guinea and Australia with a global portfolio of world class assets and development opportunities which would deliver significant benefits to both companies' shareholders.”

Woodside added that it will continue to maintain a disciplined approach to its business development opportunities.

Edited from press release by Callum O'Reilly

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