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Petroleum industry

Woodside Petroleum Acquires News Corp's Interests in Undeveloped Gas Fields

Strategic Insights

— 1 min read

Perth-based Woodside Petroleum Ltd has secured a deal to acquire News Corp Ltd's interests in undeveloped gas fields in Bass Strait, further solidifying the company's position in Australia's eastern gas market. The acquisition follows Woodside's purchase of Australian Worldwide Exploration's stakes in the fields last month, and it is subject to regulatory approvals and pre-emption by other partners. The development of the Kipper gas field is expected to provide significant benefits, including increased gas supplies for Victoria, which has been highlighted as a concern following the Longford gas explosion in September.

Key Takeaways:

  • Woodside Petroleum Ltd has acquired News Corp Ltd's 10% stake in the Kipper gas field and 23.53% interest in the adjoining Basker-Manta-Gummy fields for $18 million.
  • The acquisition is subject to regulatory approvals and pre-emption by other partners, including Esso, BHP, Royal Dutch/Shell group, Gulf Petroleum, and Petroz.
  • After the News Corp deal, Woodside will have a 20% interest in the Kipper block, along with Esso Australia Ltd, BHP Co Ltd, and Shell Australia, a unit of Royal Dutch/Shell Group.
  • Petroz will retain a 2.5% interest in the Kipper block and 5.88% in the Basker-Manta-Gummy block.
  • Woodside's acquisition of Australian Worldwide Exploration's stakes in the fields last month was completed on the same terms as the News Corp buy.
  • The development of the Kipper gas field has been a priority for Woodside, with AWE previously pushing BHP and Esso to proceed with the development.
  • The deal has been seen as a strategic move by Woodside to further entrench its presence in Australia's eastern gas market.

Statistics:

  • The acquisition price was $18 million, which represents a significant investment by Woodside in the development of the Kipper gas field.
  • The Kipper gas field is seen as the next gas field likely to be developed in Bass Strait.
  • Woodside's shares gained 12 cents to $9.52 following the announcement of the acquisition.

Sources:

  • Asia Pulse (C) 1999 Asia Pulse Pte Ltd
  • COMTEX (http://www.comtexnews.com)

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