OIL Search Ltd chairman Ricky Lee says the company will engage on proposals that will bring value to its shareholders.
This followed the company’s unanimous rejection of Woodside Petroleum’s offer to merge with Oil Search under a non-binding indicative proposal that would see Woodside acquire all share in Oil Search.
Lee said the Woodside offer had fallen short of recognising the value of Oil Search and its shareholders.
“The board of Oil Search believes our Company is in a very strong position, both operationally and financially,” Lee said in a statement yesterday.
“We have a low cost, high quality, production base which is generating strong cash flows and excellent growth opportunities, with the proposed PNG LNG Train 3 and Papua LNG among the most competitive new developments in the world.
“Oil Search provides its shareholders with a pure exposure to PNG and is fully committed to PNG. Our focus is on continuing to build and create shareholder value through the Company’s strong future growth prospects.
“If any proposals are tabled in the future that reflects compelling value for Oil Search shareholders, we will engage on them.”
A company spokesperson further explained that Oil Search was not in a sales process but was focused on growth opportunities in PNG and would continue to act in the best interests of its shareholders.
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