Oil Search gets takeoverapproach Angela Macdonald-SmithSenior...

Oil Search gets takeoverapproach

Angela Macdonald-SmithSenior resources writer

Embattled oil and gas producer Oil Search hasrevealed it has received a non-binding takeover approach, which its board andadvisers have rejected.

As reported by The Australian Financial Review’s Street Talk column, the approach for the $7.6 billion Papua New Guinean company is believed to be from Santos.

Astatement from Oil Search issued early Tuesday comes in a “clarification” to aquestion in an investor briefing held on Monday to brief investors on the shock resignation ofmanaging director Keiran Wulff due to ill health and after complaints about his behaviour.

Oil Search is hoping to expand LNG production inPapua New Guinea.

OilSearch’s weak share price combined with the leadership turmoil has causedinvestors and analysts to speculate that the company could become a takeovertarget.

Analysts have been speculatingthat Santos, or international majors such as ExxonMobil or Total that have interests in PNG could find Oil Search an attractive target.

thatassessment, the proposal was rejected as it was determined to not be in OSHshareholders’ best interests on the terms and value proposed,” it said.

Oil Search, whose shares dropped by 5.2 per cent onMonday to $3.67, didn’t reveal the terms of the proposal, or identify thesuitor.

Angela Macdonald-Smith writes on the resources industry with a focus on energy, including