latest from street talk - afr

Origin Energy and Santos are competing against the Chinese state-owned giant, PetroChina, for a $300 million plus stake in the Poseidon gas discovery off the coast of Western Australia.
An announcement on a deal is expected within the next few days.
According to sources, Origin Energy and Santos are battling hard for the bulk of Karoon Gas Australia’s 40 per cent stake in the field as both seek to expand their gas reserves.
Woodside and Shell have also been mentioned as potential contenders, although sources played down their appetite, given the number of large-scale projects in which they are involved such as the $27 billion Browse gas fields.
Poseidon sits to the north-east of Browse and was discovered in 2009 by Karoon and US heavyweight, ConocoPhillips.
As Street Talk revealed this week, PetroChina may extend its grip on the hydrocarbon reserve if it opts to buy the Karoon holding.
The listed arm of China Natural Petroleum Corp already controls a 20 per cent stake in Poseidon, which it snapped up in 2013 from ConocoPhillips, and holds a slice of the Woodside-led Browse project.
Purchasing an additional portion from cash-strapped Karoon would take its control of Poseidon to over 50 per cent. Any deal would be subject to FIRB approval and joint venture partner, ConocoPhilips, would have to waive its pre-emptive rights.
While UBS and Morgan Stanley have conducted protracted negotiations on Poseidon, it’s understood Karoon is demanding a large amount of cash up front.
This stance has been opposed by the potential bidders who are instead offering to should the hefty exploration costs, that range as high as $50 to $100 million.
Gas from Poseidon is expected to be fed into ConocoPhilips’s existing Darwin LNG facility